I changed the share float from fully diluted to current share float in the company profile hub here on Agoracom. My rational for changing this is that the average strike price for these options and warrants is $2.11 yielding $510M to the company. Until our share price reaches the $2.00 level minimum, our share float will not expand so to base current investment decisions on the fully diluted share float does not make sense to me.

When you consider the 2012 target of 170k ounces at $900 with an average gold price of $1600, this would give the company $119M in Gross Profit. In 4 years, assuming (and there are many assumptions here that come into play) that the company achieves their stated target of 510k ounces at an average cost of $652 per ounce, this would give the company $510M in gross profit per year again based on $1600 and ounce of gold. At this point, they would commend a solid mid tier premium. Other possible drivers is the price of gold stays on it's secular bull run and reaches new highs and that gold equities, after being under heavy pressure during all of 2011 may return to a more normal relationship with the price of gold.

In terms of other news items that may help the price sooner than later we have the pre-feasibility that is due in early 2012 and further news about the share buyback. There is also an 80,000m drill program underway at Segovia that could support a higher share price.

Glorieux