Here is some articles that came out recently on Catalpa Resources.
I think Catalpa Resources share price will be driven higher from JV/mergers/farm-ins or buying out of new tenements.
"With $20 million cash in the bank, the Perth-based company said that it is ”looking around” at opportunities locally and overseas to grow Catalpa into Australia’s next mid-tier gold producer."
Certainly interesting times ahead! Fingers crossed I am right.
********************************************************* Catalpa looks for more mergers
CASHED-UP goldminer Catalpa Resources is setting its sights on further acquisitions after the merger with Lion Selection.
The Perth-based company told BusinessDay that it is ''looking around'' at opportunities locally and overseas to grow Catalpa into Australia's next mid-tier gold producer.
Catalpa Resources yesterday announced it would advance its $92 million Edna May open-pit gold project into production by July next year, after raising more than $106 million in debt and equity.
As part of the Edna May finance facility, the company has sold forward 352,316 ounces of gold at the price of $1557 per ounce.
According to Catalpa, the agreement will allow it to produce more than 130,000 ounces of gold per annum from mid-2010, when Edna May comes online.
Length of hedge sales 352316/130000=2.71 years of hedged gold sales.
Revenue from hedged sales 130000*1557 = $202 million/year
With a market capitalisation of $193 million I think the cash flows look healthy moving into the future as CAH progresses towards its goals of becoming Australia's next mid-tier gold company.
Good time ahead!
CAH Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
