re: resources and debt
G'day Heres an article from shares weekly oct 5th. cheers Rod I hold crs
Croesus Mining ready to return some cash The Central Norseman gold mine is printing money for its owner, Kalgoorlie-based Croesus Mining (CRS). The company has repaid all the project debt it incurred to buy Central Norseman Gold Corporation from WMC and has just announced a two cents per share capital return to shareholders. This will be paid from the $20 million cash pile it has accumulated since it took control of the mine. Croesus is working through a $10 million exploration program designed to lift Central Norseman’s reserve life from its current two to three years. This short life is not as big an issue as casual observers might think. The mine has operated with a short reserve life for most of its 67-year operating history. The nature of Norseman’s narrow, high-grade vein systems makes them difficult to drill to reserve status until they are actually being developed. This is an awkward concept for many in the gold industry – never mind the investment community. The results of CRS’s exploration efforts will become known over the next six to nine months. The long production history of the Norseman field suggests the company has a good chance of wowing the market with new discoveries. The field is a geologist’s delight, with over 100 targets in the tenement package and plenty of drill rigs available. Despite being the fourth largest Australian-based gold miner behind AurionGold, Sons of Gwalia and Newcrest, Croesus is not widely followed by large investors and stockbrokers. Perhaps it is the Kalgoorlie head office that turns them off. With a few more years of reserves and resources up its sleeve, Croesus may be able to persuade more large investors to join the register, thus marking its entry to the “serious” league of Australian gold miners. And for the rest of us, the big exploration program may be just the catalyst to get the share price to $1
CRS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
