Ok folks I said it but didn't do it last time but this post will...

Ok folks
I said it but didn't do it last time but this post will be my last for a while as there is alot of simplistic and what I view as incorrect analysis.
I am writing this post to simply offer some numbers in reply to twin mummys post to highlight how I think people are pulling figures from thin air.
Let's assume no cost savings and the transaction is finised in 3 months . At this stage ME position will running at at 140k equiv per ann. So even I we assume costs at ME stay at 470 and costs at rand stay at 1225( which would be a failure) then total ave production costs are 860. So even at 1100 how twinummy predicts at loss is beyond me.

Now if gold was to go 1100 that means 99% chance of a weaker rand and thus even if rand depreciated only by 10 % then costs drop to 774.so one can see I have used a 25 drop in gold and only 10% depreciation of rand and the business is still profitable and very cash flow positive. Ofcourse if they do manage even a 15 % reduction in costs then using the above numbers cash costs fall to 700. Again a point that is missed but continually is implied gold one would not have keep production going if gold was to fall to a level that made it a big cashflow drag. People should go back to the numbers used in the presentation and realise it's a rand gold equation. Therefore claims they at 1200 gold one would be worth 3 cents on a PE of 20 is proof of how uninformed this discussion can be.

So I leave you all with one suggestion. Read the analysis , Ambrian being a good starting point, look at forward cashflow of Moddear east on a gold price o 1100 and lower rand and try to familiarize yourselves with the real numbers. Yes goldone will lose value if the gold price collapsed to 700 but even then that value would be confined to what they have spent and not paid off from the rand acquisition. Twinmummy sorry to pick on your numbers but your "analysis "'is a perfect example of how removed from reality some of the numbers are. Please dont assume that i think god one is not higher risk post this transaction i do, but some of the assertions made are very panicky and not based on real numbers or understanding of his resources companies dynamically DNA adjust cashflow risk. Good luck to all holders and I will continue to read as posters such as awesome , mav sharbrandi and many others are good contributors.