Valuation, page-81

T26 the biggest issue is mine life, I know posters here hate guys like me saying this but that’s the reality. The new acquisition will no doubt assist with this but it’s has to be defined first. Freight alone from a low grade deposit could take $250-400/oz off your bottom line, that’s significant so there goes the divs!!! What would change the dynamics completely is if they find a high grade zone somewhere @3-4gms that takes part of the mill capacity but really pumps your oz up. Easier said than done.
Long term the company needs to stack cash $100 million or more to give it the scope to really get it going. If they only find low grade oz and heaps of them within trucking distance then a large upgrade to the mill also changes the dynamics here. But it will need to retain as much cash as possible to do this. Management has done well here in getting this going and I’m sure they have discussed everything I’ve mentioned at board level many times.