Ann: Jundee Drilling Update, page-10

Cannon, if you are looking at the POG/USD right now, broken the NFP initial low and I suspect will be sliding eventually to 1180$. At that level 2 things can happen; bounce off or shoot right through. No idea on outcome although I would of course like a bounce.

So regardless of fundamentals, valuation will usually follow the POG down. NST will survive without cap raising as there is still a lot of margin to withstand in addition to a falling AUD. Sentiment wise not so good as the oversea investors keep selling to cover foreign Xchange risk as well as the falling SP. Some point in time SP will be low enough for the foreign cash to come back by tempting valuation.

The ultimate risk is the POG keeps breaking support and then we gold bulls will know it is a matter of holding onto gold producers that can survive a cash flow crunch. Either expect that or just stop looking to get back into this sector.

I am rather tempted to take a calculated risk to punt on buying producers I think can survive a low POG.