Ann: Funding Package for Karlawinda Gold Project, page-24

The debt to equity ratio seems better than expected.

In my previous EV projection calculations I’d used the following split. Capex $132 million. $79.2 million banks, $52.8 million equity.

Hopefully they will think about a rights issue to existing shareholders to fund the CapEx shortfall. I’ll do some new EV projections when I get time.

I also wonder if this announcement will flush out RRL for a second bite at the cherry before the money starts to be spent on the Bibra mill. RRL’ s plan seemed to revolve around the cost advantage of the relocation of their Moorlat Well mill to Bibra. This advantage evaporates the minute the mill starts getting built at Bibra so if they are planning a second assault they’ll need to come soon. Does anyone know the reserves that remain, ie the current remaining mine life of the Moorlat operations?

Also this is a slap in the face to all those retail holders that believe funding can’t be achieved for quality projects. I’m pretty optimistic about the A$ gold price going forward and with the current estimated margins and life of mine I’m happy having this stock in my portfolio and will be looking to accumulate once the final capital arrangements are disclosed.