pre open, page-14

hey people


Todays announcement confirms what i was told sometime ago.
Grades will be better then pre mine assessment and cost containment is key to improving margins. Look at their statement

"“The current trends in development progress, cost containment and grade indicate the possibility of enhancements to the original feasibility estimates of project economics” If these factors continue then the initial 76,000 ounce estimate for Perseverance will be substantially improved upon leading to enhanced project economics,” he added.

This is positive indeed as i was also told the nickel progress will be something to watch with positive news. The nickel price is a worry, but their acreage is first class nickel region. With positive drilling here, a Jv with mincor will be highly likely.

The share price realistically must have a floor in the mid high 4c -
- this year they should make about $17m in revenue from say min 1500 oz a month @$940- Not bad for a 60m dollar company. If we contain the costs and get better grades these will be conservative.

We need to see the cash costs in FY report to get a clear picture of margin and self funding. If we can build the bank balance up with more gold sales in the coming months, this will be great because the market will see us as cash positive and earnings positive- therefore not restrained by constant funding requirements.

My views, Im not concerned with the sp yet, we are producing and the company mgt is probably better then many here give credit for. They know cash cost is key for the company - under sell over deliver