grasshopper 2

Bazza why do you admire and respect the Chinese so much?

Because they are an extremely efficient,astute and corporate hardball playing race of visionaries who have grasped the bigger global picture before most others grasshopper.

So why does that make you a racist Bazza?

Because although I have the utmost respect for them as a people and their prowess in Corporate affairs and vision, I do not accept or expect them to be any more honest or dishonest than any other race of businessmen/women involved in multimillion dollar deals, and that doesn't seem to sit comfortably with some people who struggle to understand how things work in business unfortunately.

Their deal with Focus is a perfect example of their Global vision where gold, and the obvious need to stockpile as much as they can is concerned.

In what way Bazz?

Well grasshopper, they realise that we can not continue for much longer before imploding financially across the world, and so have to be ready with as much stockpile of the only thing left that will be of use.Gold.

The problem is not enough new discoveries are being made to cope with demand and so gold is at a premium and they have realised that it makes sense to mine their own and send it back to the mother ship.

But Bazza,surely they will still have to pay the going rate for the gold they help dig up at Focus Minerals?

Ah yes little one, but that is where simple logic surpasses those too blind to see.
They could of course keep buying even more and more hundreds of tons on the market than they are already doing, but that increases the price through supply and demand,especially now that Central Banks have turned 360 degrees from SELLING all their gold stocks to BUYING again in huge quantities causing even further scarcity.

So what would be a more sensible way of protecting your interest as a Country determined to stockpile gold without having to pay top dollar for it grasshopper?

Uhh buy a reasonable amount of tonnage on the market keeping the price relatively stable whilst at the same time acquiring more and more gold mines to produce your own and keep the ball rolling Bazza?

Yes grasshopper well done!
But why did you see that as detrimental to your shareholding Bazza, surely that is a good thing isn't it?

Grasshopper, the Chinese want gold.
They consider it essential to acquire as much of a stockpile as they can legitimately get their hands on without putting the price through the roof, and see a Company like Focus as the perfect base to spread their acquisition tentacles from,opening more and more opportunities to produce and buy more gold for the mother ship at the detriment of me as a shareholder.

But why is it bad for you Bazza?
Because their mission is gold. As much as they can get.
More and more funds will be spent on further acquisitions to bolster their tonnage at home and every available cent will be used to acomplish it,to the detriment of shareholder value.

But what about dividends you were promised Bazza?
There will be no dividends grasshopper,trust me on that.

Why? Do you have some kind of divine information known only to you Bazza? After all most of the other shareholders accept it as a given,saying Shandong are bound to want to pay dividends as they would be paying themselves wouldn't they?

They are not interested in wasting money which can be used to fulfill their goal on paying themselves something they already have oodles of grasshopper,that is not the plan as I see it, and would be a massive surprise to me if it ever materializes.

So how do you see things going from here Bazza?

Well the sp will bobble around for a while without ever getting near to 5 cents.
Millions will be spent on refurbishing a clapped out mill that should never have been in the equatiion in the first place.
Millions will be spent exploring TI with possibly good results.
Nepean will be a non starter for reasons I have mentioned in earlier posts unless they completely take leave of their senses.
At least one more acquisition will be made before the end of 2013 (possibly Barrick)costing even more millions to help fulfill the stockpile quest, and there will be a share consolodation which will almost certainly follow the same pattern as most consolodations do and cause the sp to sink even lower in relative terms to the price the sp was at the time of consolodation.


Blimey Bazza you are not a happy bunny are you mate,but I'm beginning to see where you are coming from?

It's true I'm not grasshopper, but I notice you are treading more softly on the ricepaper lately :)



For legal reasons this is obviously a lighthearted hypothetical conversation, and not based on any known facts whatsoever,and is purely my opinion and mine alone