Ann: Mt Morgan Ore Reserve Increases 16% to 1.4Moz, page-36

The debt has allowed the company to build the mine and keep share dilution to a minimum. The result is that the EV of the company is higher until the debt is extinguished but our earnings per share are preserved at a higher ratio for the LOM by comparison to a situation where shares are issued like confetti. It’s not easy to unwind the value destruction of share dilution once it happens. Also the market values gold producers on cash flow. My recent statergy is to find gold producers that have potential to radically increase cash flow, like late stage developers. This is where I believe you will get your biggest bang for your buck, particularly in a rising gold environment.

One particular poster has called the gold price direction wrong, is too glass half empty when it comes to viewing gold stocks and doesn’t seem to have the constitution for gold company investing and that’s why I have him on ignore as I don’t want the negativity spilling into my decision making. It’s a pity though as he is knowledgeable and has a good understanding of how these companies work.Esh