comments, page-4

Hi P,
It dosnt matter where the funding comes from to finance anything, you end up with a decrease in net equity.What particular form it takes is basicly fiddling around the margins.You have a project,assess its total value,work out what it will cost to exploit,is there a margin at the end of the day! By having ,say Offtake Partners contribute to the development costs looks like a good idea but do you really think that they will do so with no penalty for time/interest? The cost of Capital rules(Karl Marx).
As for underperformance by AIM,companies at this stage of development quite often languish(OXR with its Sepon) in share price and this reflects the risks associated with ANY mining project(esp. u/ground).Another stock that has good projects and has been hammered recently is RML,its not unusual for this sector of the market to be volotile as you tend to get a lot of short termers getting in and running for cover whem their 5% stop loss is triggered.Due to the fact that mining is a depleting game ALL mining co's need to replace reserves and if you are to do this you need to be in the right type of areas to achieve results.Zambia for Copper sounds O.K to me and Burkina Faso for Perkoa and poss other Cu lead Zinc Gold,,, Yeah I'll buy that too!!

have a great day!