gold stocks to watch in 2009, page-6

AAM is looking to produce later this year..giving them a headstart on getting some cash flow happening.

looking for initial production of 30,000 oz pa. Costs of around $600 Australian dollars.

From the recent quarterly:

"own processing plant which can also start on the basis of >250,000TPA requiring less capital and eventually increasing throughput to >500,000TPA. Secondly, near surface high grade ore will provide a substantial contribution to cash flow before bulk waste stripping commences for a multiple open-pit operation.

A1 Minerals initially is aiming to start producing gold at a rate of 30,000oz per annum. Cash costs are expected to be AUD$600 per ounce (US$ 420/oz)."

Market cap of around 20 million and a recent 70% upgrade of resources to 1.7 million ozs. So a multi-year operation and near producer. At 30,000oz current gold prices would equate to around 30c a share per year.

Current share price is only 14.5 cents, so undervalued considerably atm. Price of gold could come back considerably and still be profitable.