The old adage buy the bottom and sell the top has never looked easier.
Look at the Australian gold producer index chart in the following article and it's obvious the producers are at a ridiculous multi year low valuations. http://www.kitco.com/ind/charnock/printerfriendly/jul012008.html
It is like the article is written about and concerning CRE. No debt and no hedge book and benefits directly from higher gold price. Bulk low grade operation, ore in close proximity to their mill and they some diesel hedging. NO need to raise capital - $75m in the bank. Sp oversold.
Have a look at http://jsmineset.com/ and consider what Jim has to say regarding producer fundamentals ie,"Where your juniors are concerned please give equal attention to the fundamentals before you make any decision. When beaten down, as they have been, think about gold at $1200 and $1650 coming sooner than anyone expected.
Call the company and respectfully demand to speak to management, not an IR officer. If management is in the country but will not speak to you, put that in the debit column. Allow time for a call back as many other investor may be doing the same thing.
The questions are simple. Property, finances and costs are the subjects you approach. (Think CRE)
As an example, a high cost mining company in Ghana just experienced an increased production cost per ounce of gold as a byproduct of increased electrical costs in the country. Before you push the panic button the question to the company is “What are your total costs per ounce, not cash cost?” Once you have that answer think about gold at $1650.
Got gold, got CRE?
CRE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
