future direction of sp

The current SP is more a result of the bungle made by the directors, rather than the fundamentals of the coy.

Now that the directors have got a good rate for their
options in 2014, there is not much need for them to hold back SP, that is, if they did so in the 1st instance.

What might have happened, is that the selective results in the ANN, which had previously intended to keep the SP at a level of 17C, might have created a larger exit hole than the directors intended.

So the SP went crashing down.

They would have intended to offer a Rights at 14C, around 20% discounted at market SP of 17C.

But the SP staying stagnant for so long, accompanied by non-spectacular assays (Still excellent in my opinion) caused a lot of panic, and sell off.

The funny thing is, what will they base the Rights price on, and what will it be.

At an SP 0f 14.5C, and further dilution caused by the Rights, it would take a rights price of 10C (+ low Dilution) to make it attractive, and gain back the loyal share holders confidence.

Remember, the directors too will get the crack at 10C.


We all know the directors are smart, and have been market wise until recently:

What I think the directors will announce in the AGM, or within around a week from that:

1) Announce some more assay results, closer to Bonanza, than the last one.

2) Announce Rights at around 10C

3) Try and get in some more good news regards JV partners & Mali

Otherwise, the SP is going to be a mess, bringing down the directors shares in value too, and they can kiss the payrise goodbye.

IMO with their options secured at a safe price + a crack at 10C rights (estimate). Their is nothing to hold these guys back from launching the SP to Stellar hieghts.

Also we have discussed this before, there was always someone holding back the GMR SP, bringing it down, whenever it started going up.
Now I think that their purpose will have been achieved (quota obtained at good SP), so will push the SP up, instead of cutting it down.