It's like the old saying that anyone can be a gold producer. The difficult part is in having capex and opex cost of finding and producing much less than the value of the gold produced. Success is in making net cash flow out of the gold produced.
CGT are premature in describing themselves as a "successful" producer on their website - along with pic of MD and Chairman smiling at a gold bar.
Success is not producing some gold at enormous cost. Success is in producing gold and more than paying back the capital and operating cost incurred in doing so. Success is a high rate of return on investment.
We're all hoping for CGT to become successful but it does not help to have management incorrectly and prematurely declare themselves successful when they are clearly not succesful yet. If they don't understand what "success" is, I fear for the way they will spend the next cash instalment from shareholders.
CGT Price at posting:
9.8¢ Sentiment: None Disclosure: Held
