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Re-invest Gold on East Cape Mining Corporation (ECMC)

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Re-invest Gold on East Cape Mining Corporation (ECMC) Powered By Docstoc
					 East Cape Mining
Corporation Limited
 Re-invest your CPS Dividend
 INVESTMENT
• Investment is the most powerful and effective
  way to increase one’s financial portfolio.

• From time to time, individuals and
  corporations invest, re-invest and diversify
  their investment into portfolios that are in line
  with their investment objectives.
• As a corporation we employ a similar strategy
  and as shareholders you should do the same.
  BERKSHIRE HATHAWAY -
  WARREN BUFFET
• Berkshire Hathaway (BRK-A in NYSE) is a
  conglomerate holding company
  controlled by Warren Buffet since the 60s
  and has always re-invested all of its profit
  back into the business.
• All dividends have been reinvested back
  into the business and within 40 years, its
  share value has increased by 10,000 folds.
• A USD 1,000 compounded re-investment
  for over 40 years translates into
  USD 10,00, 000 in today’s money.
CONVERTIBLE PREFERENCE SHARES
             (CPS)
East Cape Mining Corporation Convertible Preference
Shares (CPS) is being offered at USD0.80 per share today
(relatively undervalued).
                      With the gold price at USD55 –
                      USD60 per gram, re-investment of
                      CPS will compound your wealth to
                      almost three (3) times your initial
                      investment within 1 year, a
                      whopping fifteen (15) times your
                      initial investment within 2 years on
                      the most basic assumption.
           ILLUSTRATION
The table below has been designed based on
the assumption that you re-invest your entire
dividend into subscribing more CPS the
following month and continue doing so every
month to create a compounded effect.
Assumption 1: one share of CPS is equivalent
to USD0.80.
Assumption 2: 1 gram of gold is equivalent to
USD60.
Assumption 3: Subscribing 4,800 CPS which is
equivalent to USD3,840.
                                                         Monthly CPS
Month     Accumulative CPS   Dividend per Month (USD)                    %
                                                        Re-investment
Initial        4,800                   480                   600         0
  1            5,400                   540                  600          12
  2            6,000                   600                  600          25
  3            6.600                   660                  600          37
  4            7,200                   720                  1,200        50
  5            8,400                   840                  1,200        75
  6            9,600                   960                 1,200        100
  7            10,800                 1,080                 1,200       125
  8            12,000                 1,200                 1,200       150
  9            13,200                 1,320                 1,800       175
 10            15,000                 1,500                 1,800       212
  11           16,800                 1,680                 2,400       250
 12           19,200                  1,920                2,400        300
 13            21,600                 2,160                 2,400       350
 14            24,000                 2,400                 3,000       400
 15            27,000                 2,700                 3,600       462
 16            30,600                 3,060                 3,600       537
 17            34,200                 3,420                 4,200       612
 18            38,400                 3,840                 4,800       700
 19            43,200                 4,320                 5,400       800
 20            48,600                 4,860                 6,000       912
 21            54,600                 5,460                 7,200       1037
 22            61,800                 6,180                 7,800       1187
 23            69,600                 6,960                 8,400       1350
 24           78,000                  7,800                   -         1525
• An initial investment of 4,800 CPS will be
  compounded to almost 19,200 CPS in 1 year
  and 78,000 CPS in 2 years.

• What if the spot gold price
  increases beyond USD60?
• Your compounded re-
  investment effect would be
  much greater than what
  was illustrated.

				
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posted:10/22/2011
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