Dumped? But why...?, page-18

Fangk

Those are very good questions.

I have no mining experience, I am just a person with some economics/accounting studies behind me.

I think you should talk with the company secretary, who will probably give you some useful ideas/clarifications. I have found him very helpful.

I think that retention of Simberi is dependent on the gold price, but I do not know what that gold price is. I would prefer them to retain Simberi (as I have mentioned because it will still make money over a longish time frame), unless they have a much better paying project at hand, and because I think the gold price will go up (at least in AUD terms when our currency final tanks).

I do expect Gwalia costs to trend up, partly because eventually they will run out of the 9gm/t deposits and the average grade will fall back plus the increased costs of mining at deeper depths. I think they can sustain the higher ore grade for another 2-3 years. I hope, but do not know, that they can expand their Gwalia gold mining to increase the volume of ore that is made available to the mill to offset any production decline from falling ore grades. The mill has 300-400k toness of spare capacity since they ceased mining King of the Hills and relied solely on Gwalia for their ore.

I have been thinking about these issues for some time, but as they are a bit distant in time before there is an impact on profits/revenue I am focusing on the immediate issue of the gold price, drilling results and whether they have any deals in train to secure their future once Gwalia "runs dry". However, I am sure that broker analysts are including these considerations in their company valuations/analysis, but I have not had access to any of these.

Good luck.

loki