Good morning Audacious. It will be regrettable if the cash position is now down to $40m, as they were sitting on $57m+ for quite a long time. The Goldstone investment reduced the cash balance a little, and of course the BCD problem took a bigger bite. Maybe a little more 'due diligence' prior to the BCD move might have avoided that loss.
Many of us would have liked to see a large slice of that $57m used for an acquisition of a near-term producing asset (such as LGL's Bendigo mine, which CGT acquired for about $4m, and which with expenditure of about $20 on further exploration looks like a sound long-term investment), or for a return of capital. If the production costs at Henty have been brought down to a reasonable level, the operating profit should cover minor investments such as Goldstone.
With the name change to Unity Mining, there was considerable optimism among shareholders that something major was going to occur - maybe a copper or silver acquisition or another gold tenement with a longer minelife. The subsequent fall in the SP reflects the markets disappointment with the ongoing deafening silence.
Mike.
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