Dear Zog,It will be interesting to see what comes out of the...

Dear Zog,

It will be interesting to see what comes out of the strategic review that DB says should be released in June. Further, what will the market's reaction be?

2 weeks ago DB had a hold rating on the company and a target price of $1.35. It certainly is interesting times for gold which seems to be hovering around that $1,370-$1,390 mark not sure of what it wants to do.

All one can say is cost control is the current focus with the drop in price meaning companies cannot be inefficient or costly in the face of a drop in revenues. It can be said more generally that lean times can cause companies to critically examine their costs structure and put them in a better place to take advantage of any upturn that may come.

With the drop in the AUD and the last fortnight's stabilisation in the gold price hopefully some calm will take over. Having said that, there is talk the US will wind down its stimulus efforts on the basis that it's economy is improving. There is plenty of uncertainty around with no clear path except for the realisation that goldies must control their costs- a fact Mr. Davis is acutely aware of.