Chart - No bottom in sight, page-54

If brokers come out with negative reports, and they will, then given the sentiment in this sector, I do not see a recovery in the share price. Company is cashflow negative which explains why they are selling the mining fleet. I suppose that was the hint this would report would really stink.

I was seduced by the relatively OK AISC of January quarter despite the sale of only 38k ounces and thought a similar or slightly higher cost could be achieved this quarter given the sale of 41k ounces previously announced. However my gut kept gurgling that all was not right here and I am convinced the gold price is heading under USD1180 so it was best to sell. This is just dumb luck for once favouring me.

I have concerns about the costs of developing and mining the main underground gold deposit which is pretty low grade for an underground operation. However this ore source will not be needed for years so it does not bear on current value, and perhaps when it is mined gold will be trading at USD2000 so it would be economic!.

Besides the company duplicity, I find the high cost relative to Q1 incomprehensible, and I would like them to give more details.

I hope Shakattack tells us of the new target prices set by brokers when they are all available on his marvelous Bloomberg terminal in the next few days.

MacBank's target price will be lower - maybe down to 25 cents.

loki