I like many of the companies you have listed in your post.
I cannot fathom the latest drop in CGX shareprice except someone big getting out on the TSX or people have concerns about costs (eg due to the high oil price) and the fact that CGX's deposit is only around 1.2 grams/tonne. Most gold producers have been affected, and it has only been some junior specs that have made most of the running in recent months. Perhaps people are selling out now in anticipation of goldies falling so they can buy them back later at a cheaper level. Alternatively there may be concerns about what happens to the POG when QE2 ends and there is some monetary tightening by central banks.
There is an interesting post on the AZH thread about our goldies in an article that also mentions CGX and the fact that many of them are underpriced.
I am thinking of buying some gold shares later on in June/July and CGX at current prices is on my list. My concern with CGX is its poor liquidity on the ASX.
Wish I had bought CCU when it fell back under 20 cents last year. Looked at it but did not buy. I think silver will continue to outperform gold over the next few years (but be more volatile). I feel very uncomfortable buying into any silver plays now as I have missed the move and do not know how to value them, and consider there is plenty of scope to make gains in the junior and midcap goldies later this year.
It is good to have another knowledgeable person agreeing that CGX is significantly underpriced. To me it looks like one that has the scope to be producing over 500k ounces pa in three 3 years time and have a price north of $10. They have been given excellent tax treatment, which will give them a huge cashflow over time for investment and dividends. For CGX to be trading at its current price it seems like a crazy market to me or maybe I am a foolish goldbug.
loki
CGX Price at posting:
$2.69 Sentiment: LT Buy Disclosure: Held
