hotcopper perception and reality, page-5

My clients also held 15% of RMS at one stage, and I saw that one evolve in different fashion. RMS always felt like a DOM or MML with their high-grade profile and share structure. You should remember RMS were sold down to 6c in June 2004, even though Wattle Dam was showing signs of turning into a significant gold mine. IGR is different and
I understand and accept this, and this raising is more about reaching a higher level of production, rather than waiting. The cash flow could then fund other ventures, or perhaps another source of ore for IGR?

I have seen numerous stocks where equity raisings were strongly opposed and these included HER and even way back to the old JML when they were coming out of their Pilbara Mines days. Equity if it can be placed at the right price can be much easier and more appropriate than taking on more debt and perhaps some more hedging.

I sat opposite Chris and listened to him when he explained to 10c rights issue with an option that was done through Martin Place Securities. He did the right thing and approached us but at the time, I wasn't in a position to assist. Chris has timed the production ramp up beautifully, because Salt Creek was the catalyst, and now we have another one in Majestic. Sure the raisings at lower prices saw the stock under pressure in the immediate-term but they have always worked their way through it.

My job now is to find the next RMS and IGR, and again their share structures will be completely different but the potential returns still exist. I was the major buyer of Southern Gold (SAU) around 7c, and it was tempting to correct some posts on HC that suspected I knew something was coming. You only have to see them present and have some cross sections explained, throw in some vision and you have a speculative investment proposition. I am not a jumpy daytrader that relies on gossip so I am happy to let the drilling work for me, along with the fact their value is already underpinned by the resource.

Reality is I really like Nanette Anderson as a person and an MD and her Father Terry Allen who did such a fine job with Herald Resources since they found Dairi around 12 years ago. SAU is getting hits that reminded me of RMS way back when we were buying everything from 13c all the way down to 6c with the odd 11c-13c capital raising thrown in.

I would much prefer SAU keeps a low profile, but I think it is worthwhile to illustrate where I am coming from on Hotcopper. Yes if SAU runs my funds value increases but isn't this the same for everyone?

I laid out my 8 elephants prior to having my fund completely up and running. Unfortunately the odd stock got away from me, but I live a cleaner lifestyle than Charlie Sheen so for me it is all about passion, people and yes eventually profit.

Cheers

Budfox