This week?, page-43

AuGeo

I respectfully disagree not with your reasoning but about the reason for the 1 year delay that we have seen. I believe that 1 year ago when borders were just opening up, work force issues and supply issues were rife and then interest rates started rising, this project may not have been viable. No one was leading and certainly not a couple of $100m to a penny stock to build a mine with a 10 year life. And raising $70m + in equity for a stock with $5m in the bank may have been difficult to.

I may be wrong but I believe that these factors plus needing Phase V results were the reasons for the delay. Shaws would have advised delay as well. So long as the eventual outcome is positive I think it was wise to delay.

I could be wrong of course and the project will turn out a dud, but with all the ducks being lined up so comprehensively (offtakes, financing, camp, power, port services, early works and engineering pricing, JV partner support etc) management would look pretty stupid if it’s not a goer. Shaws reckon the economics are exceptional … but then they would!

H