castlemaine gold up

A current analyst view is that CGT is cheap but the company needs to develop it's 50,000oz pa profile beyond an initial 4 year horizon.

What some analysts may not fully appreciate is the very low (projected) production cost for initial 4 year window and the comprehensive array of follow up targets and plays that are scheduled for further exploration.

The bottom line, as the market reads it (and will read it) is that for the medium term at least, CGT is very very cheap for a an operation that is prokjected to be low cost. The market will soon transition CGT from explorer to producer and will position the compampany along side producer peers in basic terms oz's of resource and production cost. The 4 year caviet is too long for the market to be worried about ATM so I expect a further healthy increase to the SP without much risk. If only other plays were so easy!!!

Longer term I expect the company to firm up its resources and I expect it to benefit from a much lower AUD when that day eventially comes.

As posted I'm a moderate on where PoG may go. However, IF gold maintains or extends its current relative value (the bulls have their day) much more of the old LGL digs would suddenly become viable. Worth thinking about but for the moment, 6c + looks a certainty in an uncertain market.

cheers