Ann: Merger of Equals of Adamus Resources and End, page-11

re: Ann: Merger of Equals of Adamus Resources... I like the concept of a merger. Bigger gold companies get better ratings.

Time and exposure over the coming weeks will tell whether this is the one to go for and whether someone else comes over the top. Personally, I like most need some time to form a view on that.

But, Why buy out the hedge now??? Gold has risen over $650 in the past year and over $250 in the past month alone. Do we really want to dilute to buy $100m in gold at these prices when the company mines the stuff? To do so now is to assume gold will go much higher over time.

The shares have yet to re rate upon achieving the last major hurdles to construct the mine on time, on budget and operating within cost forecasts. Ergo, a substantial cash type deal now is dilutionary until there is a rerating.

Nobody likes the hedge at these gold prices but it is for a modest amount of the total resource/reserve and adu has already paid the price for it. I'm more interested in the 80pc of deliverable metal which isnt hedged.

Buying the hedge back now merely delivers a profit to the banks on the other side.

Enough from me on the topic for now.