msro options expiry, page-8

With capex estimated at $16.3mn by MSR the project financing will come largely from the expiry and exercise of the options (approx $12mn) and cash on the balance sheet.

We still have the assay results from at least 4 700 metres of drilling to be released from Shambesai and the TEO was submitted to the relevant ministry a month ago so feedback on that could come at any time.

In addition there are 6 rigs hard at work so maybe there is more than 4 700 metres due.

So as long as we have some more positive statements from MSR with good grades the project financing is taken care of as a rising MSR share price will take care of exercising the MSROs.

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On an another topic...

The USA has 7 days to agree an increase in its debt ceiling - failure to do so will result in a huge drop in global share prices and I would guess a dump on the US$.

This can only send gold through the roof making MSR's margins even fatter.

Of course if a new ceiling is agreed in the US$ the global sigh of relief will result in a wall of cash that has been sitting on the sidelines hitting the markets and a substantial rally everywhere.

imo goldies with low forecast costs that are close to production are the place to be right now as whatever happens in the US it is pretty easy to put a positive spin on the reasons for holding such stocks.

As far as I am concerned there are 2 main stocks in the smaller cap part of town that qualify and MSR is one.

The other is EVG but of course EVG has a $100mn mkt cap so the largest upside remains in MSR.

All conjecture I know but it sits at the heart of what I am doing with my cash right now.

I hold both.

EB