ann: trial mining update, page-75

Counterfiat, I suppose we will just have to wait and see how the next few months turn out for gold in USD. That was just one of the points I was looking at but your argument makes sense -at least for Indian buyers. Let’s see how the new Chinese ETF's affect the balance when they start buying. Chinese demand is tipped to overtake Indian demand and the new ETF's will make buying for Chinese easier.

Good debate initiated by Bruce’s earlier post.

More specifically for ABU, they should now be digging up ore.
Incredible achievement considering they only established a jorc resource 13 months ago.
From maiden jorc to first gold and cash flow in a 14 month period is by far the best achievement I can recall for any gold developer that I have ever looked at.
Management has delivered above and beyond anything that any of us could have asked for a year ago.
No dilution over the last year and no need for any dilution or debt going forward has been a big positive.
What has been in their control has been handled extremely well and in excellent time and what is outside their control- the POG is not likely to be an issue for the company thanks to the grade and expected strong margins at prices where others are marginal.
There were many doubters over the last year regarding permitting, regarding developing within initial capex estimate (now on budget to come in well below initial estimates), regarding how long to get into production and some were suggesting more dilution was inevitable.
I think this is an excellent buy opportunity despite the current POG and sentiment toward it with the sp more than adequately factoring in the POG drop. There are still quite a few producers that I am not sure I can say the same for. I.e. some may still not have fallen enough to factor in current gold prices and need to see a rebound in gold or lower AUD to stem off further declines. For ABU any increase in POG will be a bonus rather than a necessity IMO.
Most producers that I have done numbers on (or looked at other's research) need at least 10 years of cash flow to equate to their current market caps (at least one exception more like 5 years) but on my numbers ABU could produce a bank cash balance exceeding its mc within 3 years and without nearly as much risk to that if POG falls further short term.
Well done Darren and team.