ticking boxes

management is ticking boxes. they have a chairman/ceo who bought another 400K shares this month.

today, they announced they had cleared the Con. Notes debt.
they're unhedged. in the last quaerterly we saw they had gone cash flow positive. they raised some more cash with a placement so they've got cash in the bank.

they have Deutsche Bank on the registry holding 52%. they have Barrick as a client for the next 2 years (or more).
they have listings in Germany and Canada where gold is cherished.

they have the ground at Laverton plus a consolidation plan with potential at depth. (see presentation dated 12 OCT 2009 in Perth - it's a good read!)

they have a gold inventory of 2.1 million ounces which leads my crude mental arithmetic process to a current value of 33 cents/share.

it's been said these guys are flying under the radar - well, they've been tunneling (as miners do) and they've come up for air and seen the light. even the S&P people spotted this groundhog and shunted him straight into the index rebalance this week.

the charts are saying something similar.



let's start with the weekly chart above. the MACD-Histogram shows where the tide has bottomed at the vertical lines - the asterisks show weekly candles that have to be taken out for a new rally to be triggered. the rally in july 2007 at the left margin of the chart is an example. two weeks ago we got another signal for the bulls and the trigger candle has been taken out.

moving to the daily chart below, the bar chart has too many gaps so the Point n Figure delivers the essence of the price action since the 29 cent top in OCT 2009. there's a squeeze happening now between the 16.5 cent resistance-cum-support level and the downtrend line from the top.



when will she go for it? comex gold has been toey. could be soon.

i hold because management is ticking boxes.