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These are international mines, and international don't like investing into companies that have 700mil+ o/shares.

Obviously overseas fund managers are interested post consolidation, because this would be the only reason in doing this.

Executive Chairman Peter Cordin stated, ?The combination of these two capital management initiatives is another important milestone towards increasing shareholder value. The consolidation will assist in attracting international institutional investors who currently avoid investing in Companies with a large number of issued shares. The Company has strong cash flows, three operating gold mines and the outlook for the gold market remains positive, all of which has added significant value to the Company.?

Also based on 80koz pa at US$1160, cost at US$565/oz, development costs of US$8.3mil, not sure of the tax rate but have used 30%, i come up with ESP 3.6 cents x PE of 6 =
SP of 22.0 cents.

I used PE of 6 due short mine life, but any upgrades in resources is all upside.

Today's announcement of share back tells you they are truly comfortable with what they have and current op costs and they want to deliver shareholder value.