re: News: Adamus Resources creating a new gro... Somebody seems...

re: News: Adamus Resources creating a new gro... Somebody seems to like the presentation, resulting in an 8% pop in the share price this morning.

The CEO has a calm, reassuring style of presentation.

A few positives from the presentation are in relation to optimising output from the two existing mines to around 200k ounces pa and reducing costs. Increases in the mine life are espected. Lots of drilling planned in a number of countries at a cost of $30m pa. Hedge to be reduced to only 15% of annual production and repayment of ADU's $60m debt. This is what having a cash stash can do for you.

The one potential negative I take away is more dilution is possible down the road via M&A activity. I would rather that future expansion was undertaken by organic growth, or at least a cheap cash acquisition of assets. No doubt there would be some upside from M&A to the shareholders of the new ADU/EDV but it would not be as large in percentage terms.

loki