There is a broker report out, suggesting a 24c - 32c value on CRE...lol...it is based on a gold price of just AUD$625 as a high side target.
After reading the report, I decided to do my own...far too many questionable assumptions in my opinion, leading me to question the competancy of the author.
I must say however, I did find interesting the comment of first gold poor just 16 weeks from CRE giving the go-ahead decision at Laverton...this has obviously come directly from the company.
Anyway, even based on the figures in the report, the AUD$ rise in the gold price should, at the very least, add a few more cents to their "valuations".
Personally, I think they have under-done Laverton and more importantly, have uneccessarily locked CRE into a 75% hedging position...for the sake of shareholders, I really do hope CRE are not seriously considering this option.
Perhaps the biggest "miss" by the author of the report however, is the unrealised value in the uranium spin-off.
Anyway, here is the report for those interested...
