gold tops $900 on haven demand as equities dro, page-11

I think at the end of the day, this stock will prove itself in the 2010/11fys. The worries with this stock is the lack of mine life and the costs. The mine life will only be proven once we get some good positive cash flow. The cost of producing is a bit of a worry. They have gone from a cash cost of $467 to $673 over a 6th month period. They say that this will reduce in the next quarter and I would think that something in the order of sub $600 should be a good result. If they prove that this quarter is a one off, I think this share price will start a long upward trend.

To put it into perspective, a 13 million profit places this share at 5c on a pe of 5. I think the profit can be 4 to 5 times this in 2011fy and if this times in with the top of the gold boom and some good exploration results, we could be looking at 50c per share. not a bad return over a 3 year period.