gold production 22% above forecast

At last some good news for GTM holders. The company has just announced production figures for the quarter that are 22% above those forecast in the June quarterly.

The market has punished small gold stocks - and GTM in particular - quite severely in recent months but with the oil price increasing inflationary pressure, that situation may now be changing.

As a gold producer with some of the best grades in Australia (albeit in relatively small mines) and identified pockets of high grade ore at Cat's Whiskers, Edna Beryl and Chariot, GTM should do well in the next few months - particularly if the gold price can kick above recent resistance at $413. With confirmation of improved gold grades, GTM looks cheap at current valuation IMO.

Potential investors should be aware that GTM has around 780m shares on issue - although this is not necessarily an impediment to share price appreciation when one considers the chart for OXR. I hold GTM so conduct your own research.

Gupper