Ann: Share Purchase Plan Offer Document, page-60

Some here don’t understand the effect of dilution on EPS going forward and IMO some people here need a lesson in investing 101 if they think a balooning share register doesn’t matter. I was thinking of going through the WAF vs DCN funding history comparison to help try and explain the difference but it involves quite a lot of research and work which I don’t need to do as I understand the effect of the difference between a capital raising to external parties and a rights issue to existing holders and although I like to help educate, sometimes the best education is experience.

Getting a high ratio of debt to equity is good as it preserves a higher EPS over the life of the mine and that’s what you want as an investor, a bigger proportion of future profits. The dilution we experienced with the unnecessary and far too early confetti share give away didn’t just dilute the share register and place a massive stock overhang on the share price, it diluted our rights to a share of the company’s earnings forever. Once you realise this you understand that you can’t wind this loss of value back. A share consolidation doesn’t do it as the the value loss is baked in at the time of the share issue.

Currently 863,524,727 shares on issue with more to be issued once the SPP is completed, banksters in charge, yawn yawn yawn. Low ball TO offer coming and that’s all she wrote.

We better hope the premium to market is better than the 21% premium that B2 Gold offered for Papillon because I’d be crying in my weet-bix if I wake up to that sort of offer.

29 cents doesn’t sound so hot considering the risk and time to production still remaining. A standard 60% premium leaves us with about 38 cents, also hardly a coupe for investors considering the residual risk and time to first gold. Unfortunately I think that’s all she’ll write as the banksters are in control. Not even a rising US$ gold price can shift this thing. Amazing how such a bright future can be swept away in one foul swoop. Esh