Fully respected your view . I always get concerned when...

Fully respected your view .

I always get concerned when companies go chasing a target and that target becomes too large to accomplish.

They could achieve 70,000 - 100,000 oz per year quite easily and bank the cash and wait for an acquisition.

If gold drops in the short term, and you are too leveraged then you have no where to go .

If you are cashed up and little debt , the world is your oyster.

No need to take excessive risks.



QUOTE="bitzer, post: 21802895, member: 51500"]Respectfully, Couldn't disagree more Rumbai.
1. They are already well on the road to 100,000 Oz PA. The economies of scale are what determine BLK's low AISC. Makes absolutely no sense to restrict production to 60,000 Oz
2. As HH pointed out BLK has only 300m shares on issue. Dilution at this stage is negligible imo. Maybe it matters if you own 10-15% but as I said earlier, dilution for the correct reasons is positive and creates greater shareholder wealth. CR's only suck for traders imho.
3. To make the leap to a 200k Oz producer means that BLK joins a very small 'club' and will add significant value
4. The move to 200k Oz will create enormous cash flow and seriously strengthen the balance sheet. BLK has made noises about disciplined acquisitions down the track.
5. The move to 200k Oz will (imo) paint a great big, flashing neon target on BLK's back. It will become a takeover target that is too good to ignore.
6. The company will have plenty of balance sheet strength to debt finance the expansion and I would speculate they would also be able to wrap any existing debt into any new facility. Or it could be a mix of debt and equity. Nice to have options !

In the end I guess it depends on a punters investing timeline. CR Not usually a good thing for short term punters but can create significant wealth for those investors with a view to the med/long term.
Traders might take a quick profit here or there but BLK has been an outstanding INVESTMENT for me over the last 2 years and imo will continue to be so.[/QUOTE]