It is unlikely that CTO will make anyone’s dreams come true overnight. Like a lot of posters on this thread I also hate (really hate) waiting for things BUT I invest for future upside any way. For that immediate adrenaline rush, go to the races.
Yeah ... CTO (and my other punts) are great tangible super investments. In my case I'm hoping that a few thousand spent here or there today will pay for the kid's uni fees in about 15 years time. For the record I’m putting money into gold and energy prospects because my super (all in cash by Jan 08) is no longer making anything AND I can’t get it out. There is no super choice in my particular industry, and I fully expect the current and future governments to raid my hard earned balance.
We may find that at 100,000 oz pa CTO only just breaks even and that may be an optimistic projection given the high value of infrastructure now in place. I note that there is also a high location risk with a common access to the proposed prospects. In any case it is not acceptable for CTO to rush things at the expense of safety considerations. These issues scare the market, particularly given the over capitalisation experiences of BDG and LGL in Victoria (yes these are very different prospects but the market doesn't like to think about the differences.)
In the very long term Mickyd's analysis is probably quite conservative. My gut feel is that CTO mining in Charters Towers will continue for generations. Bottom line is that IF you are looking for dividends, a low share price now will allow you to build up greater equity .
Cheers
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