My take is that the market is sceptical about a number of important factors; firstly under performance of Haile since commissioning last year and the only thing that can change this sentiment is improvement over the next 2 qtrs. I heard that they put power to the new mill a month ago so I am hoping for a big improvement in tons and recovery. This will be key. Second most important will be confidence in the production from Didipio following the transition to underground. Again we wait to see what’s going to happen there and until we get consistent performance from the mine the market will punish us. Thirdly we need to know how much it will cost and how long it will take to develop the new ore bodies at Waihi. I am completely confident that OGC management team will succeed in all the above areas as their track record is excellent (slightly dented by short term hiccups at Haille where design issues clearly frustrated plant performance - not just the weather) so I am holding firmly until the good news comes out. I expect the share price to respond positively in that period assuming the gold price is constant.
We also need to convince the market that we can finance future capital out of free cash flow. I believe we can.
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