what is going on , page-15

Arbroath

" Do you really think they bought assets with cash costs of $1235 an ounce in their own backyard without being careful not to understand how they would reduce the cash costs?"

Personally even if they can reduce cash costs by 20% I still wouldn't be comfortable with the Cookes mine as an operation. Its marginal, at current gold prices and could be fatal if the pog corrects with an eventual strengthening USD. I am agnostic to buying any resource company that isn't in the lower quartiles of cash costs.

The reason I supported the spinning out of Megamine assets was that in a country known for having the highest gold mining Cash costs in the world, I felt it was right that GDO clearly defined its point of difference to investors.

Shareholders would of been rewarded as Modders ramp up continued now the story has totally changed. The level of debt has changed, the likihood of dilution has increased, and we now have an element of substantial risk.