why i will sell and take my loss

Firstly let me say I bought in around $2, after reading some posts on HC that highlighted the gold bullion on hand.

However people nicely forget to post all the facts.

TBR reported $110m in gold bullion as at 31/12.However this is consoldiated position with RND. Therefore only $83m for TBR and $27m for RND.

Also TBR anounced $18.5 in borrowings--$15m tbr, $3.5m rnd

So TBR net position is $83m less $15m in borrowings some $68m. If we assume 30% tax some$22m , the net position is around $46m ---far less than the $110m everyone is spruiking.

I note that TBR does own 44% of Rnd, so acknowledge today this 44% does have some value to TBR,, BUT the Liberian vend will reduce the TBR holding to under 6%.

More of a concern is the lack of drilling success at the EKJV. Raleigh deeps--grade fell away significately--no further drilling. Mary fault--insufficient grade--no further drilling.

Ghana--Pro punter, "possibly one of the largest finds in Ghana".

Oh please, even the TBR funded research report put the upside at around 500,000 ounces--that is miniscule for Ghanaian discoveries.--A nice deposit i will admit, but your comments are wrong.

To offset exploration budget on their bullion profit will only take about 100 years given the way this company spends money on exploration.

Look at the asx annoucement on 19th Sept 2008

Read the last paragragh--the next report on Ghana was on 14th April 2011

Even now see how free flowing the reports on Ghana are!!!.

But the thing that made me realise minority shareholders will never see the wealth locked into the company--as i now agree with Bacci--is the Liberian vend into Rnd , the subsiduary of TBR.

This dilutes the value of Rnd from today which I value at $2 per share--even though they trade at 40c, to around 25c.


I now see why this stocks trades at a significant discount and am concerned the same may be in the wings for TBR.

Hope not, but for now am happy to sell the remaining 60,000 shares I have at $1.40.

I will take my loss and try and use the money better somewhere else.

Good Luck