Would posters please not post on POG on this thread. Stick to discussing the company please.
I attended the RIU Conference in Fremantle this week and listened to a lot of gold explorers spiel about their prospects. My intention was to confirm my investment in MOY as a good longer term gold investment.
What I can report is that I came away convinced that this is the best place to keep my gold money.
The management continues to get things right and the turnaround story is proof of how good these guys are. They have a very sound production process in place with a stable AISC. At the current gold price, there is still lots of margin as witnessed by the free cashflow they are generating.
To the upside - news about the exploration programme couldn't be better, and the prospects of MOY expanding significantly with what is being found under the shallow pits is good. Higher grade gold through the mill is a way of lowering the AISC and improving the margin further. The upcoming metallurgy results should show this is possible.
Their cost of increasing reserves through exploration is very low, and their lease holdings are so large that the huge amount being currently spent on exploration virtually guarantees the life of mine will be extended much further than it is currently stated to be.
All in all, a great company with a great set up and exciting future. My money staying right where it is.
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