convertable debenture, page-10

Oh boy, $300 per ounce cost and gold is $1350, this stock is going up, they have a resource of 3.5 million ounces (inferred? read it in their last report), market cap just over $20 million. Around $7 for an ounce of gold. Very cheap stock.

I am in DOM and CTO as well, I bought DOM because they are advanced producer stage and is a safe bet on the price of gold, CTO has just started and they have a nice reserve of cash. It's good that cto has cash now, but when you buy something like CTO, you are also buying cash when you buy their share price. Same with BDG, they have $45 million in cash, market cap of around 60 million so when you buy their shares your buying alot of cash so it's not as leveraged to the price of gold and as we have seen, the value of cash compared to gold has been deteriorating rapidly. MUN on the other hand is purely Gold, no cash but a credit line keeping this going so this is super leveraged to the price of gold. But they are producing a reasonable amount of gold and now at the higher price of gold, there is no doubt they will be able to remove the line of credit very soon and begin to fully fund their operations from the mining of gold. I would rate this stock as the best goldie for potential on the ASX, a definite 10-100 bagger. Yes you heard me right a possible 100 bagger, because cash costs per ounce is very low at $300, $3.5 million ounces divided by $20-$25 million market cap is $7 per ounce and at the current price of $1350 - $300 that is $1050 in profit for each ounce of gold. So $7 an ounce in the ground gets you $1050, thats why I call this a possible 100 bagger assuming the gold price stays where it is!!, if gold price falls back to $900 AUD then it's only a 50 bagger :)