great buying opportunity, page-12

yep, MC about A$1300m as above^^

with about A$270m cash it is my best pick of gold producers. The new CEO, David Quinlivan, is a very good operator and already having a big impact on the company from what I've seen. I think the benefits will start flowing through to the bottom line in the current quarter and he'll be able to put gold production on a sustainable growth profile while keeping costs back under control.

I'm not sure I want to see the Australian assets sold off, unless they get a very good price but it looks like they are being way undervalued at the moment. They might be producing a small loss on the accounts but they should be producing considerable positive cash flow which is getting masked by depreciation. With the mining boom in iron ore coming off this should take away some of the pressure on labour costs which have been out of control in this state up until now.

Anyway that's some of my thoughts for what it's worth.


ps. Deutsche Bank came out today with an updated Buy rating - http://boss.afr.com.au/p/markets/market_wrap/alacer_gold_aqg_oMp2331ytLArW9dEKSJyyH