why another placement, page-10

I am not a longterm holder of Lgl. But I spent years in PNG, and actually know one of the guys who located the deposit on Lihir Island. I contacted the company last week, and asked them what their dividend policy was.I did get a reply, more or less to the effect that they were concious of raising shareholder value ie. ballarat, and interests in Africa etc.etc.


I may be showing some ignorance here, but as I recall LGL has only paid one dividend.

They are now raising new capital again.

The current expectation of LGL production will exceed one million ounces in this current year.

So my question is, to what purpose are they raising further capital ?

In the following year do they wish to produce 1.2 million ounces of gold, and up the ante again, and the following year a further increase in production.

For shareholders who have a longterm view of this stock, I think it sadly disappointing.

I think it is really only a stock that should be traded, with the ups and downs that are (sometimes ) evident.

My opinion only !