For me Autosime has made some pretty good points and I also believe that vlad86 on 28th April (post 6649180) made an excellent case for buying in, when he/she kicked off the overview thread. I have reproduced a section that I see as very pertinent in that it points to the ability of the company to raise most of the required capital, in a still difficult financial environment.
This suggests to me that people do infact have confidence in the direction of the company and reinforces the stake taken by the Chinese thus far.
"Takeover of Rand Uranium: This is a major step taken by GDO and will have an immediate impact on the company. GDO has entered into a binding agreement to take over Rand Uranium for $250m/US. Of which a $210m US loan facility is currently being set-up, thought pending approval as the financier does their due-dilligence. The remander would either be paid through; a share placement, a capital raising, or profits, the latter would be most friendly to current shareholders.
For $250m, GDO has acquired this GOLD PRODUCING company, who will immediately add about 150,000 ounces per year to GDOs production, giving GDO a production figure of 300,000 ounces in 2012! Along with this, the acquisition includes a further 13.5m ounces of resource and 3m ounces of reserves. Pushing the total gold resource of GDO to over 45m ounces!!!"
I see Champ that you have recently sold and rebought with a Hold sentiment. Presumably the report, whilst you express disappointment, has not dampened your preparedness to buy and hold, based upon your recently disclosured positions.
Gold producers like GDO are afterall well placed, IMVHO.
esp.
GDO Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
