Voltalia Ord Shs VLTAF

RE: Golden Points To Ponder

[ALLEN4]

Agreed.  What we are seeing with current market conditions is extreme and is akin to a strike action by fund managers to refuse to invest in gold mining stocks due to the perceived inefficiencies of gold miners and the lack of a positive return during a high gold price environment.  The sentiment is so extreme that any miner who indicates that there is going to be some cost involved in building a mine is seen as a non-starter and to be avoided by investors.  At the same time there is a recognition that the majors will soon fall short of their need to replace their reserves with new deposits.  This strike by fund managers cannot last indefinitely;  it will soon become apparent that we need new mines to come on stream and that we might just have to put some money into the junior sector, who are largely responsible for new mines being developed, if the stated demand by majors/intermediates for new deposits is legitimate.