abu at 40 cents - quickly a la adn x2, page-57

Firehawk, that was the gain off the low over the last 4 weeks (my post from yesterday pm).

Yes Reiner, a second strong retest of the $1300 break out level last night with a slightly higher low (1312) than the previous intraday low (1308) with neither test even close to threatening to break the support and a strong rebound to finish much higher on both occasions. Not dropping all the way to support shows strong buying on the dips.

NEM had a bad qtrly report and started last night by dropping around 5% in the US but then rebounding to close up 1.5%.
Bullish sign when the market brushes off bad news (SBM a recent exception - I'm guessing the bad news there took the market by surprise rather than already being priced in).

Very surprising that in 2011 Newmont approved a $US450m expansion to add between 60,000 and 90,000 ounces of annual production. That’s a lot of capital for those ounces even though mine life needs to be taken into account.

“The gold major had shelved an already-started $US450m expansion of its Tanami mine in the Northern Territory late last year. Newmont approved the Tanami project in July 2011 at a budgeted cost of $US400m to $US450m.
It was expected to add between 60,000 and 90,000 ounces of annual production to the mine from 2015.
During the second quarter, Newmont's results revealed that all in-sustaining costs at its other Australian and New Zealand assets, which includes Tanami, had increased to $US1417 an ounce.”

http://www.theaustralian.com.au/business/mining-energy/weak-gold-price-forces-us-miners-newmonts-16bn-writedown/story-e6frg9df-1226686570476

By contrast ABU will be spending around $10-14mill (compare to NEM's US$450mill proposal!) total capex for a similar annual gold production (up to 50,000oz/yr phase 2 to 100,000oz/yr for phase 3).

GRADE IS KING, especially when it's open pit from surface to eliminate development capex. Importantly any further near surface discoveries will add strong value as plant expansions are extremely low cost for gravity only.