CAI Valuation - comparison to peers, page-29

Hi Load

You are beginning to make a case for not investing in the gold sector at all...

The PoG recently went for a bit of a run. The historical resistance (on a timeline of 18 months) was $US1800 ($AUD2700) and we are now seeing a pullback to those levels. If the PoG obeys the technical requirements it should bounce higher from now on to confirm a bull market. If it fails this test and falls below what has now become the technical support (i.e. $US1800) the gold sector is going to take a hit... especially so as you are showing reduced margins have become a characteristic.

Starting this thread, however, has been very useful for analysing CAI's prospects. I think we have clarified what we need to see happen... e.g. roughly a 12% improvement in the head grade and resolution of the tight financial conditions with a suitable restructure. If that happens CAI will compare quite favorably.