I have to disagree on several accounts, and hope you end up being proved wrong, based on the following -
.. Company in 2005 to report a 10 million oz gold resource (23 Mt @ 14 g/t Au) in compliance with the JORC Code.
.. This includes a 340,000 tonnes per annum gold processing plant, power, water, tailings dam, freehold land, workshops, geological and engineering offices, underground mobile and fixed equipment including drills, trucks and loaders. [at 14g/t this is 170,000 oz per annum]
.. Broad production targets for the September and December quarters remain unchanged at 5,000 ozs of gold for September and 15,000 ozs for December. [Note to MD, this would be milestone no.1 ...]
What we, as shareholders SHOULD be saying back to the MD, is that your glass house will be shattered if you mismanage what appears to be a golden goose, as claimed in the reports.
The demonstration of this is the forecasted production of December to 15,0000 oz gold produced. If by June 2010 we've not seen several motnhs of this, then the operation has been too highly geared and the assets have been wasted ... if CTO seeks more funding, again they've messed it up!
Like any good gold producer, it's the production forecasts should be plotted and achieved. Otherwise, there's simply no income.
Time should tell ... IMO.
CTO Price at posting:
16.0¢ Sentiment: ST Buy Disclosure: Held
