Ann: WAF hits 6.5m at 61.8 g/t gold at M1S, page-36

Hi Guys,

My understanding from reading recent broker notes is that cash MAY become tight as they approach production. This is probably why they are not spending money on the deeper drilling of M1 South, in particular, from surface. Once they are confident that they will not have a cost blow out in the mine build then they will be more comfortable firing up the drills again.

I would think that management are confident with the share register to be able to fight off a hostile TO offer.

However, I also think that that a TO offer in the ST is unlikely. The Randgold/ Barrick and now Newmont/ Goldcorp/ Barrick merger situation has thrown up a number of potential cast off assets that may come to market. The current mid tier West African miners will likely want to keep their power dry to see what "bargains" may arise from this prior to considering pulling the trigger on WAF.

I am happy to be buying here and can pass on that WAF is a "pound the table buy" from at least one resource focused shop.

I am also comfortable buying here knowing that I may be early and have to sit through an orphan phase, like what GOR went through. You can see, however, using GOR as an analogue that the wait will be rewarded.

Cheers
John