SIH 0.00% 0.3¢ sihayo gold limited

Rogue, as I have very clearly stated in other posts, SIH is...

  1. 1,870 Posts.
    Rogue, as I have very clearly stated in other posts, SIH is running a dangerous risk of failing by going the route of developing a marginal project IMO, with a considerable risk of blowing out share capital in the process.

    I have posted, and I'm sure you will recall it clearly, that I questioned back a couple of months ago, whether SIH has indicated the likelihood of it getting access to the western porphyries. At that time you posted the ASX release of the Supreme Court outcome, which was not my question at that time, I was more interested to know if the Dept of Mines had approved exploration drilling access. I indicated then that the best aspect to SIH was that exploration, and I continue to believe that. It would be the only reason why I would consider investing in SIH at the moment.

    It was confirmed in the quarterly just past that access is yet to be granted.

    I don't believe that the current feasibility study will stand the test, and its unfortunate because if the shares on issue are blown out by the considerable cost of the current activities then any shareholder (or potential shareholder such as myself) will lose interest in the real upside to that true exploration potential, which would otherwise make SIH more attractive as an investment. But SIH are clearly not pursuing that route of developing the company's business, and I believe they are doing an injustice to the company's future as a consequence.

    Clearly the Asian investors have no realisation of that view, they simply are a wealthy group of investors that like the idea of having control over a "gold company" with Indonesian gold assets, not thinking about the long term view of shareholder return on investment. (Even if they eventually take all other shareholders out of their stock later on, they don't benefit financially either!).

    As I said before, I plan to monitor how things develop, and intend to post appropriately.

 
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