questions and answers, page-52

Pepsipet,

I understand its very hard to evaluate my investment approach. I have outlined parts of it when questioned above.

I do however want to make a few more general comments.

1. I don't invest in exploration companies. I agree that approach is entirely hit and miss.
2. I invest across all industries (biotech, industrial and resources).
3. Within the resources sector I specifically look for companies that are moving towards development. (typically 12 months or less).
4. I like companies that have been oversold due to negative news that they can overcome. I.e. CRC's courtroom delays.
5. I prefer companies that have a clear pipeline of projects that IF executed can deliver 10x return.
6. If the company is not a multi-mine operator/potential operator then a clear statement/strategy to lift mine throughput within 2 years is also suitable.
7. I aim to make 10x return, but understand that is not always going to happen, nor it is a guarantee. At least if they have the potential and fall short I still might get a couple of 100 percent out.
8. I like company's that have the cash to execute their strategy and/or require minimum dilution to get there.
9. I dont feel the need to be invested. If I can't find anything that meets my criteria I simply wait on the sidlines with cash.


I agree that CRC's mine is a starter mine. I agree that they have potential but from my research, everything I have read and the amount of debt they will carry I don't see an expansion above 50k oz within 2 years. IMO

If management come out next week and say there strategy is to lift production and expand the plant, then great I can re-evaluate as it might then fall within my criteria.

If you have any other questions let us know or post your email and I can send through any other info you may want to see.

I have:

1. 74 pages of notes on every announcement released by crc since acquiring the majors reef project.
2. a couple of spread sheets (DCF's and what if scenarios).

Most of my other notes on potential dilution and general thoughts/research have been posted here.