staying focused, page-8

The typical spec stock is one that has a promising lease, massive blue sky potential, maybe a good drill hole or two, but not much more. This is a producing gold miner with a well understood base metal deposit that is progressing well through feasability.

What it doesn't have is that much in the way of excitement - most of the potential of this stock is known and to an extent quantifiable. That means that investors may be prepared to sink more funds into it than they would the average spec but it also means there's nothing to get the red cordial brigade super excited about.

But if they continue to produce gold, particularly if they start to profitably produce from east mandilla as well as west mandilla, and the metallurgy and mine planning for koongie continues to progress well, then the value equation will eventually become so compelling that they will at the minimum become a takeover target. There's still 'ifs and buts' here, and its not a risk free investment, but highly speculative is not how I'd class it.

One risk is that it gets taken over on the cheap before the market does recognise it, meaning investors will miss out on a level of returns.