adu up on a down day and no news!, page-5

Hi Loki,

I wasn't aware of the rains, but given equities/investment isn't my profesionnal job I can't keep up at a significant detail level - not sure if you work in the investment area? That wouldn't be the best outcome if so. But from what I remember from prior announcements in the last few months, and one of the reasons I wasn't tempted to get out of ADU at 70 something cents (and take abit of a hit/loss) was the mention of a look at reserve upgrades in November.

We're nearing the end of november so perhaps given what you said about rain we'll have to give it till mid dec. STill given the recent climate and the fact that ADU has held strong, I would say others are aware of this and waiting too. EIther that or institutional buying is holding us up.

Re: a merged entity takeover, in all honesty I have no idea. I find it hard to speculate on these things, it will be a decent company post -merge, but unlike in very special cases e.g. sandfire's high grade results, GOR's strategic Yamarna Gold Belt tenements, I can't see a complete stand out ADU/EDV. THat said I don't have the experience or knowledge to merit how other companies would assess this issue, they may indeed like the cash backng and exposure to near term gold production to buy in over other entities.

It would be interesting though, but what would the cash backing be (if you've done the figures) Post paying back the loans and hedges? With golds recent falls I would hope the hedge would cost less to extinguish. THen again depending which way you look at it (e.g. will the gold bubble pop when europe goes down, or will europe failing and money printing etc ensuing, result in gold eventually rallying upwards despite some drops in recent times with speculators and people pulling out money). If gold does indeed continue to drop one may argue having the hedge may be better than extinguishing it. I'm not a fan of debt (personal life wise) so I would still love to see any loans paid off.

YOu beat me to it. Indeed I did buy in at around the $0.80 mark. I believe i would be around 81-83 in terms of the parcels left, given I've managed to offload around 50% of my holdings when it went back up. To be honest it's not that I saw the company as a bad investment, but it's gone up only to go back down so many times, that I felt I had a better chance of selling out and buying back in. Also in a way I believe europe is eventually going to capitulate further, and I would like to take some money out. I think gold may stand such a GFC2, but I'm sure as for any equities, that they will take abit of a share price hit due to contagion from the masses taking out money that they need, risk aversion to equities in general etc, so my argument would be to buy back in shortly after. Merger wise I don't see anything bad about it, I have not, well can not, really remember all the merits about it, although I read it back at the time.

It'd be interesting to calculate what the combined merger means to ADU shareholders per share, would you have this?