During the year work focused on gaining all relevant state and local government approvals to commence open pit mining in the London Hill and Pig and Whistle areas of the deposit. In September 2013 statutory endorsement approval was received from the Department of Environment and Primary Industries and in January 2014, following an extensive community engagement process, a Planning Permit was issued by the Central Goldfields Shire Council to provide for the commencement of mining.
On 9 May 2014 Octagonal announced that development of the Pearl Croydon Deposit would be suspended to focus short term capital expenditure on the development of the Alliance South Deposit.
I think maybe the market reacted initially to a certain extent the fear that all there is to the cash flow positive project was the Alliance South UG mining and have ignored the fall back Pearl Croydon open pit. If you add the other projects that can potentially add to the bulk tonnage of processing and with no company debt, the last piece of puzzle, besides the urgency of UG economic grades to address short term cash flow, is POG/USD to give back the curent very bearish sentiment in the sector. The AUD continue bearishness will take care of the actual sale revenue in POG/AUD.
Now I can see from Denham's angle why they were participating in the Cap raise recently and accumulating from ill informed sellers. Don't you think typical of the market to extend at the extremes because of a perceived bias? To add to this perceived doom scenario some comments from HC "experts" stating THEIR obvious reasons why it is doomed to failure from their bias but judging from companies exposure , I do not pay any attention to these credible comments. Time will tell so I am not concerned with the SP at the moment. Coming week will be interesting in the Aussie market in general as the index has now closed below the low and we are diverging from the US markets.
POG/USD is also interesting with the continuing buying of the USD so in a way a double edge sword. POG/USD continue to fall comforted by the AUD massive fall in a better POG/AUD. The less USD safe haven status also mean a much stronger AUD! The foreign monies are leaving out shores hence diverging from US markets but I suspect at some point these risk funds will find our market sufficiently sold down for a compelling case of entry, not that it will affect us being the smallest end of town. We just need to see the gold sentiment reversing to the bull side to ride the tide of optimism. Good luck holders.
ORS Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
