cto retirement plan

Ronald McRivkin, I am with you in looking forward to 30 plus years of dividends rather than a quick takeover offer. (see thread 'to Lockitt').

Dare I say that retirement plan now seems to be within sight. Thare a many of us who have been hanging on for so long (watching our SP values erode away with increasing cynicism about whether CTO will ever realise our initial expectations) that I believe many have failed to see CTO is about to turn the corner. Finally producing gold is the key.

25k oz in 2009 (with 15k in Dec qtr) is a bit behind schedule but is enough according to CTO to put them in profit territory.

CTO Forecasts of
85k oz in 2010
160k oz in 2011
and my guesstimates of
240k oz in 2012
300k oz in 2013
should be something for shareholders to get excited about.

Let's take a conservative look at what 300k oz means;
Gold price @ $1200 oz (take a stab at anything up to $2000)
production cost $350 0z
profit $850 oz
@ 300,000 oz = $255m
divvy this up among 900m shares (currently 740m)
and we have a profit of 28.3 cents per share.

I do not know how to calculate how much of this will actually be passed on as a dividend as there will be taxes and company reserves aspects coming into play. But I am confident it will be high enough proportion to be a handy retirement package for me. Is it too much to hope that an annual dividend per share will be about the same as what we just paid per share in the current SPP?

I have made similar calculations for the intervening years before full production making allowances for higher production costs, for eg
150,000 oz will provide 13cents per share profit
200,000 oz will provide 18 cents profit per share.

For those more interested in SP gain rather than dividends, think about how much a punter would be willing to pay for a share with a 10-20 cent annual dividend for at least 30 years

We have turned the corner at last. It just has not sunk in yet.