weekly nta, page-8

Hi Rab

Agree as the LRF2 are one of my worries with this stock.

It is a heck of a lot of stock and if they placed them, it will have to be at a large discount to the then market price.

So they won't be able to place them at $1.55~ until the ords hit say $1.80 so no imminent issue.

As has been suggested, it would be fairer if they were cancelled or at least offered to existing holders at that time via a rights issue or DRP.

The positive for me is that they are buying back on market again. With a $1~ discount, this is such easy value creation. They have probably been constrained by debt covenants and the pricing period for the options. So perhaps they have sold down a few shares (eg LGL from the EQI deal or some RIV). Anyway, good to see them acting rationally and increases the chances they won't just place the LRF2 to build their empire but will do it in a way that enhances the value of LRF for existing holders.

I want to stick with them as they have proven to be good mining stock managers - just need to see them looking after existing holders when capital management (particularily LRF2) arises and I will be a long term holder.