cto - profit announcement, page-24

I agree with you GMT.

The market is not always accurate.

But in the current environment for gold companies, if other gold companies in Australia and around the world seriously believed that CTO had 10 million JORC ounces of gold that could be mined cost effectively then this gold would not be valued at a token AUD11.57 an ounce in ground when gold is currently around AUD1,380 an ounce. (Let's not forget CTO has even made mention of 50 million ounces!!)

"Citigold is a growth company that aims to a growing cash flow from expanding gold mining operations and the huge capital growth upside of an exploration company seeking to define up to 50 million ounces of gold."
At http://www.citigold.com/Business_Overview.asp

By the way, that quote is not a typo on my behalf. At this point in time there clearly is a word missing after "aims to" in the first line.

Why was a takeover bid made for AND valuing AND at well over three billion dollars compared to CTO at just $115 million when AND currently has much less gold than CTO's 10 million ounces of JORC gold?

You'd think the shareholders of the bidding company would be jumping up and down complaining that a 100% premium can be offered to CTO shareholders for 10 million ounces of gold that would then still only cost the bidder $230 million in scrip.