Ann: Expansion Study Confirms Mine Life Extension Strategy, page-8

Good question!
One that was in my mind, until I had a good chat with Peter and other management about it.

My thinking is there are few options for the finance....

1) Funding from positive Cashflow......which looks hard but is possible.
They can continue mining and make profit for few quarters, with higher gold price the profits will be higher.
Ideal situation for shareholders.

2) Partial Bank Funding Or Forward Gold Selling....

3) Partial Equity Raising

4) Combination of Option 1+ 2+ 3

From my conversation Equity raising is the last thing on their mind. No way at this price.
MOY is heavily backed by IMC resource fund. They will not allow to dilute, no way at this price level.
They hold over 45% of shares and the top 20 are holding almost 70% of shares. Extremely smart cookie like David & Vicky Teoh of TPG telecom are also a shareholder. It's chump change for those people but glad to have them as shareholders.

MOY is not desperate to build the expansion mill tomorrow. They have a year+ time on their hand.
I don't know what will be the gold price in a year......but I tend to believe it will be higher than today.
With higher gold price things get a little easier and vice versa.

Trading action tells me not much interest to buy .......more importantly sellers are in no hurry to sell.
Only someone with urgent needs of fund would sell......volume is extremely low. Few times someone have tried to push the share price down.......they also launch an concerted attack on HC forum to unsettle some people.....but some dip buyers have stepped in to arrest the fall.
Overall buyers have been absent from the whole junior gold sector. For some reason I don't know, market has shown no love to junior miners and the gold run from 1225-1340 has been a complete waste of time for the junior miner shareholders. But hey, not for the miners....they are getting more money for their gold. So the fundamentals are getting better, the companies are getting stronger and the share price is falling at the same time. Never experienced this before.

I think ordinary investors and fund managers burned in the last five years are very cautious with the junior gold sector. The break out in gold is yet to be taken seriously. Once that happens.....things will change for good for the junior miners. It could be days or weeks or months away. Who knows?


The company is in good hands. All those site developments to accommodate extra personnel is happening for a reason. The company is closer to the beginning of the journey than to the end.

So keeping all those things in mind, I am a watchful holder. Would love to see higher prices but it is what it is. It is a difficult market.