Share price at around its all time lows (0.5cents), and about...

Share price at around its all time lows (0.5cents), and about 97% off its price this time two years ago; and 75% off its price, this time last year!!

Every quarter, the share price has seen lower highs and lower lows - not ideal from a technical perspective!!!
That said, it can only go so much lower, unless it goes out of business.

After an $8mill cap raising in 2012, the company has spent up and now is working its way through a $4mill loan from its major shareholder, ATLAS IRON... it is only a matter of time before it goes, once again, cap in hand to investors. However, the last time it asked for funds, the share price was 260% higher than it is presently, and I can't see the current holders being so generous or forgiving. So, where's the money going to come from? And at what discount to today's price to justify a position?

The company has presented little to highlight plans with timeframes for bringing its main Otjo project into production - we were advised back in September 2011 that first production would be July 2012.

In the December 2011 update, we were advised "progressing as planned to production at Otjo".

Subsequently, in June 2012, it was reported that the test drilling program had been expanded and would be completed in the December 2012 quarter.
It seems any further discussion about when production would commence was relegated to the dustbin... all commentary since has turned to exploration and development.

In the 2012 Annual report for example, the directors state:

"Future Operations - The Company’s principal operating goals in the second half of 2012 and into 2013 are:
• To continue to explore and advance high quality manganese exploration and development projects.
• To principally focus on its 75.5% owned Otjo Project in Namibia, to increase the Mineral Resource base and progress project studies so that the Company is positioned for a rapid transition to development.
• At the Otjo Project, complete an 11,000 metre reverse circulation drilling program aimed at increasing the
Mineral Resource base significantly above that reported in February, 2012.
• Continue to progress development studies on the Otjo Project... "

As at the latest shareholder update, the board gives the following guidance
"...A number of opportunities have been identified and are being investigated to reduce operating costs and capital expenditure requirements, including:
- A range of start-up production alternatives;
- Improved utilisation of local personnel and other resources where appropriate;
- Processing using Dense Media Separation (DMS) Plant to
provide improved yield compared with jig plants; and
- Revisions to capital costs in order to achieve a significant reduction from the $43-$47million capital cost estimate reported in the April 2011 scoping study".

All fluff and very little substance in my opinion.

The company has spent about $20million in the past two years, about $7million of which was for salaries and admin expenses. The company is valued at about $4-and-a-half million. Plenty of tests, potentially plenty of resource in the ground.. but no money to dig it out of the ground and no indication to its shareholders of how it intends to do so and when it intends to do so.

ATLAS IRON now own approx 55% of Shaw - they could purchase the rest for approx $2million.

In my opinion, this is yet another example of a company, which has been very poorly managed. Imagine taking $1 and turning it into 2cents... that is what this company has succeeded in doing in just over 2 years. Quite a feat.

I hope Peter Benjamin and the board have some answers for how they intend to make Shaw a success in their next announcement...

Any Shaw tragics out there with an opinion? Or information?
I'd be interested to hear from you?

		Dec-11	Mar-12	Jun-12	Sep-12	Dec-12	Mar-13	Jun-13	TOTAL 21 MTHS
Opening Cash		$11,101k	$5,232k	$2,173k	$862k	$5,270k	$3,186k	$1,547k
Cash spent		$6,111k	$2,845k	$1,942k	$2,622k	$1,883k	$1,888k	$1,264k	$18,555k
	ADMIN	$1,457k	$284k	$901k	$1,340k	$711k	$681k	$874k	$6,248k
Capital raised					$7,725k				$7,725k
Borrowings				$500k	-$601k	-$100k			-$201k
Exchange diffs		$242k	-$214k	$131k	-$94k	-$101k	$249k	-$18k	$195k
Closing Cash		$5,232k	$2,173k	$862k	$5,270k	$3,186k	$1,547k	$265k
SHARE PRICE	HIGH	$0.210	$0.072	$0.049	$0.030	$0.018	$0.016	$0.015
	LOW	$0.061	$0.044	$0.019	$0.013	$0.012	$0.010	$0.003
BROKERS REPORT
12 MONTH PRICE TARGET						$0.020			$0.015