Despite CTO's best quarterly production of gold and CTO telling us that they are currently "building" the mine as well as "operating" it the market was not happy that CTO was approximately $2 million cash flow negative.
The issue I guess is how much longer is the market going to come up with the cash for CTO to continue "building" the mine?
How much more "building" needs to take place, and at what cost, before CTO will become cash flow positive.
By that point in time how many shares will be on issue? 1.5 billion? 2 billion? What will be left for current shareholders?
The biggest saviour at this stage for CTO is a much higher gold price.
Maybe it's time for gold companies collectively to launch legal action against those who have been manipulating down the price of gold. This has been proven beyond reasonable doubt by GATA.
CTO Price at posting:
10.5¢ Sentiment: None Disclosure: Not Held
