what is up, page-17

I believe AGO have already played the buy-out card and weren't prepared to pay a price we'd say yes to, that was all part of the chest puffing leading up to the decision to proceed with Mt Webber.

The thing to look at is how much clear profit have AGO been making, then try to figure that into additional costs for Mt Webber being further out. That's the starting point. Then AJM have to pay additional fees for sales to AGO on top of that. This is all before we have to repay capital financing and other debts to AGO in the vicinity of 10 million dollars.

Add to that the repayments due over the next couple of years for Delta and it's pretty easy to see why we're hovering around .10. Even if everything goes to plan and sales continue decently and production ramps up in both Mt Webber & Delta, it's going to be a relatively tough couple of years before we're in the clear and can really make use of the production income.

This is before we even think about financing development of Tabalong (if/when regulatory approvals are finalised) or Pilgangoora.

IMO we shouldn't be surprised to see some divestment of much of our exploration assets and a bit of dilution for some financing to get a couple of our projects going over the next couple of years and cover our bases in case of down-turns, but it's all relative and once Mt Webber & Delta are paid off we will be singing.

I really like this stock and think it's great buying at this price. I think Tabalong approval and or Pilgangoora investors will see it back to .15 or .20 in no time.

DYOR & GLTA