operational update from goldstone., page-38

[groan]

I for one would not like to see an Australian acquisition. I have been avoiding Australian gold miners due to the 3rd/ 4th quartile production costs and the regulatory environment.

I agree that UML should concentrate on what it has in Goldstone and Henty and then start distributing consistent, sustainable dividends to shareholders.

I will certainly contact management to express concerns.

However, given that this is what management are planning on then I think that..

(1) It will need to be a merger for script for a company that is at least at the BFS stage but can't find suitable funding. The UML cash can then be applied to the development.

(2) Any acquisition should meet the parameter of being in production within 24 months. Any further out and the 'nearology' value is lost.

(3) The project needs to be a 1st or 2nd cost quartile project possibly meaning outside of Australia and technically simple - i.e. open cut.

(4) UML need to show that they can both fund any additional expansion plans and meet their Henty capex requirements and future Goldstone commitments.

(5) UML need to show how they intend to reward shareholders with regular dividend income streams. Many new producers or near term producers such as BDR, RED, PGI have stated their intentions to become dividend payers and shareholders want this.

I was building a stake in UML but will now sit and watch and see what management intend. [sigh!]

Cheers
John