What afabulous offer. One (1) Share for every three (3) Shares...

What afabulous offer. One (1) Share for every three (3) Shares at an issue price ofA$ 0.025 per Share. Everyone will grab it without hesitation, especially whenyou consider, that the stock is on the open market now for A$ 0.021 and maybeeven cheaper next week.

If acompany carries out a capital increase by issuing new shares, the existingshareholders generally receive preferential treatment by the subscriptionrights.

Not sowith Sihayo. As so often in the past, the existing credulous shareholders arebeing cheated and ripped off.

The shareprice of A$ 0.021 and the market cap of $ 62.97 million is a ridiculous farcefor a gold explorer with expected gold ounces of 1,585,000 and a gold price ofnearly $ 2,000.

Based onthe cost of the feasibility study in the report of August 3, 2018 with expectedgold ounces of 1,585,000, the current profit would be
$ 1.903.334.000 as seen below.

Operating Costs

Mining$247,8/oz recovered

Processing$225,9/oz recovered

Site andRegional Admin $77,7/oz recovered

Total C1costs (Lom) $551,4/oz recovered

plus

Corporatecost $42,2/oz recovered

Royalties$48,7/oz recovered

SustainingCapex $7,3/oz recovered

Totaloperating Costs $649,6/oz recovered

Cost for contained gold ounces 1.585.000 oz =1.029.616.000 $

TotalCapital Costs 157.800.000 $

Total Costs 1.187.416.000 $

Revenue per ounce

gold priceof US $1,950/oz 1.585.000 oz = 3.090.750.000 $

profit 1.903.334.000 $

With outstanding shares of 2.86 billion and a 75% interest in the Sihayoproject, this results in a purely arithmetical share price of A$ 0.50. Even ifthis price is perhaps too ambitious, a share price between A$ 0.20 and A$ 0.50 shouldbe possible with the current price of gold. This does not even include the resources for ore andfantasies for diamonds and other resources for gold at the Hutabargot exploration target and other prospects that will be explored.

It canonly be hoped that a black knight jumps out of the bushes and forces a hostiletakeover, which should be difficult in view of the existing majorities in thecompany. Then the tactical games with the share price would finally stop andthe smaller shareholders outside the top 10 would receive a reasonably fairreturn on the company's long-term investment.

It shouldwork somehow to interest the oracle of Omaha in Sihayo Gold. Warren Buffett waslast made a gold digger by joining Barrick Gold. He could buy the whole dump andhe would have the money to drive forward gold mining without dubious investors.

Unfortunately,this is probably just wishful thinking, but hope dies last.