sorry vayama bmagold suks, page-5

ST,

I agree with what Tricha is saying and I don't think insults gain anything. If I was to buy in again it would be once the report is out with all the bad news that must surely be in it.

We will see when the Dec Qtr report comes out exactly what BMO has produced and at what cost, and how much they have lost. We will also hopefully see their 2007 production, timing and cost projections.

Yes, the projection for 2007 may be 70k oz. The real question is a) can they deliver and b) at what margin. Other questions are c) exploration ounces to add to reserves and d) future of the leased mill and alternatives including toll-treating or capex for new mill (but before they commit to a new mill they will surely need to find a lot more ounces for economic mine life).

For me, if you look at all factors as a whole the risk is fairly high at this point in time. The saving grace will be if gold makes a good burst northwards this year and stays there. I decided late last year that I was better to invest in quality explorers with no production risk, and sell out as production neared, eg AVO 58c to 1.40 in 2006. With mining cost inflation in Aus out of control, production costs are of huge concern. Trader Rog had a good article on this recently on 321gold I think - I was wondering when the international commentators would start to realise the serious ongoing impact of this.

Anyway, I hope 2007 is good to you and all holders.