cash up, cost per oz down. all good, page-16

Here are my thoughts on Troy's sp

Gold shares had their recovery run first. With the rest of the market now rebounding, they have become relatively less interesting. Speculative money quickly accumulates in the hot area, but just as quickly move on. There are many interesting prospects elsewhere.

The talk of a substantially higher gold price has subsided a lot. The AUD price has now fallen significantly. There is a definite risk of it dropping further imo.

Troy is unusual, being a small well run company which is excellent at delivering incremental medium risk projects, which likely increase s/holder wealth over time. But it's in a speculative trader driven sector, which loves hype and probably doesn't correctly value that steady strategy.

Imo the last 1/4ly was only ok. Movements in quoted cash cost figures are deceptive when you transitions in or out of stockpile production. At Sandstone they milled their highest 2 g/t stockpiled ore. So firstly, the quarters cash costs don’t include any mining costs. Secondly, the average stockpile grade was 1 g/t as at 31 Dec, so the remaining average grade is now less than 1 going forward.

With Andorhinas, there was a net reduction in the stockpile, thus creating the small headline reduction of in CC. Also worth noting the recovery rate is not edging up – still only 84% v’s the 92% anticipated. On a P&L basis, my guess is thay made a small profit last 1/4.

Troy is an excellent company, but atm I'm one of the sellers who've been selling a portion into rallies to free up funds for elsewhere. My guess is that qtrs 3 and partic 4 is when I'll want to be fully invested here again.