CGT castlemaine goldfields limited

Ann: Ballarat Exploration Update - Spectacular Go, page-25

  1. Osi
    18,686 Posts.
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    re: Ann: Ballarat Exploration Update - Specta... In normal times a suggestion of a 2.2 PE target on the 7:30 Report would drive "mum and dad" investor interest.

    Times are not normal and there are also a few dumpers around .... but so far so good on just about every front.

    Assuming the PIIGS debt conntinues to be rolled over without tehnical default (perhaps a 20% chance) and the US fumbles along on its current lowish tangent, Gold will ease back and CGT's PE target could rise a little.

    An alternative scenario is some form of technical default (by the Greeks) leading to both a minor credit crunch and money printing by the ECB. (maybe a 50% probability) Under this scenaro it would be business as usual at CGT I guess with PoG not changing much due to consumer demand remaining strong.

    If all hell breaks loose, other PIIGS follow in the footsteps of Greece along with a collapse of the Italian bond market expect a major credit squeeze which would catestrophicallly impact the Australian resources and mortgage markets. The CGT SP in this senario would I guess be trashed along with everything else on the ASX BUT the operation would likely remaing very profitable in my humble and uninformed opinion. PoG could go anywhere of this happens. The AUD could fall significantly but the price of gold could actually climb in AUD terms. (30% probability though the media would have me believe it is a 90% probablity lol.)

    this is just my take on things.

    cheers


 
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