I expect MAK will carefully consider whether to convert their...

I expect MAK will carefully consider whether to convert their notes or get cash back + interest according to the state of the mine and its returns. If production does not come up to what they want by the time the notes are due they will want cash back + their 20% interest. If it does come up as we hope (and expect) they'll convert their notes. When they have the shares I'd be surprised if they dump them all on the market because they'd depress the price substantially and they are in it to make money. It would be counterproductive except in the case they line up a big buyer at a good price.

They get their shares for .01, so they need to be valued at > .012 for MAK to make more money than the interest they would get, probably a substantial premium on this so they don't lose if they want to sell them. So the gold production needs to go up so that people are prepared to pay say .015 or more after figuring in the full dilution, so say a market cap of around 2184702539 x .015 or about 33mil.

Say the mine can get gold production up to previous best levels of around 20,000 oz/qtr or 80,000/yr.(optimistic but probably achievable when into the higher grades - after all, that's why the mine is continuing and the capital being put into it).

Say gold price is A$1400/oz. (conservative).
Say costs /oz come down to $1000/oz. (They were below this previously so probably very achievable - costs/oz comes down radically when higher grades are being worked).
Profit then say A$400/oz x 80,000/yr = A$32,000,000/yr.

Profit/share/yr (fully diluted) A$0.0146.

So, in this possibly optimistic (but nevertheless achievable) scenario, MAK are not going to be happy with just interest when they can possibly get close to what they paid/share (.01) from 1 year or so profit, and with this likely to continue for a few years.

What does this mean for us? SP will go up. 5c possibly achievable within a 6mths to a year if all goes well with the mine and prospects for continuing with improved reserves.

Of course you can play with the numbers, but even with a less optimistic scenario of say 60,000 oz /yr and a profit of $300/oz, it's still a profit/yr of around .007/share which will still put the sp up significantly from what it is now.

In the event things are not as good as we hope, MAK may want their money and interest back. Even at production of only 50,000 oz/yr and costs of say $1100/oz, profit $300/oz, the company would be in a position to pay back MAK their money in less than a year and one would expect that they could get finance from somewhere to pay MAK when required. That return seems eminently achievable.
In the longer run this would likely leave current holders in a better position as the dilution would be far less.

They might also be able to get something for the copper prospects in Vic as well.

When the ompany report they are into the higher gold and have had a quarter of good production, you will see the rise.