Dear Keshav,Big volume and value today. Price was crunched from...

Dear Keshav,

Big volume and value today. Price was crunched from $3.41 to the $3.38 closing price in the last 40 minutes of trading. RSI is 32.7, so nearly oversold on this technical. The technicals are negative- Momentum down; MACD is below 0 line and signal line; Pring KST is negative; there's technical Distribution etc! With the gold price US$2,413 as I type, it will be intresting to see if the shareprice whips back or takes some time to recover. For mine, this is a time for thinking about buying the dip. It maybe worth a look tomorrow and later in the week (that applies to most of the ASX listed gold companies-explorer, developer and producer alike).

The company 52 week high is $4.14 and the 52 week low is $2.18. The margins are still great and even with the gold price easing from US$2,470 this quarter, the average price received to date this quarter, is still great. There's too much inflation and debt everywhere, in my mind. I'm not worried about the long term direction of the company or the gold price, however, the shareprice drop can certainly be disconcerting. It's not pleasant seeing red everywhere.

I keep a big eye on the future. I am mindful that the company has approx. 656M shares on issue. A 10 cent dividend per year costs $65.6M per annum. The company has stated an intention to have no further share raisings. I'm keen to see the drilling results and mine development out of both WA and Cambodia. The company has stated a desire to be a possible 300,000oz p/a gold producer. What shareprice and free cash at that point in time? 10c dividend p/a payer then or more likely 20c??? One can hope...