Hi DollarfastI am a LT holder of DEG for fundamental reasons....

Hi Dollarfast

I am a LT holder of DEG for fundamental reasons. For me, DEG primarily comes down to the risk of dilution versus the potential for share price gain from a substantial find during drilling. SM6 is the immediate hope for the 'big find'. At the same time, the current resolution for an extra 10% annual placement facility (to 25% annual without shareholder approval) is a potential LT dilution issue catching my attention. We now have 400M shares compared to half that a couple of years ago. The resolution and the nature of compounding returns, means shares could expand out to over 500M in the first year and almost a billion within four years. And we shareholders would be taken out of the decison-making. I'm not saying the resolution is a bad one. It is a tough time for junour miners and if used strategically and with us as a priority could be beneficial.

If the resolution passes, it will mean the company can dilute and pay salaries. The extent to which they will also be able to fund a meaningful volume of exploring will come down to whether they can grow the share price, such that the ratio of exploration spend to management spend is as high as possible. This relies a little on the luck of what is in the earth on our tenements. Being a quality region like the Deseado Massif, luck gets a bit of a helping hand. But success also importantly depends upon the skills of management to ensure the company performs exploration well and is fruitful in providing assurance to existing shareholders that there is a trajectory of success. This would also bring in new holders and raise the share price.

I used the Advanced Search function on HotCopper and went back and had a look at the HotCopper posts from the time when Peter Batten resigned from Bannerman Resources in 2008. I did this as I wanted a sense of whether prior shareholders felt like they were being supported. To be honest, this didn;t help and it now comes down to what is delivered in his first six months.

I think the Deseado Massif is great ground. Peter Batten's job is to show us that he is a great leader to match! I'm here and waiting for SM6. Still excellent potential. But it is time to drill.

Cheers

Elisby1