A clipping from the Speculator:The Speculator: Gold near record...

A clipping from the Speculator:

The Speculator: Gold near record in Aussie dollars

By David Haselhurst, ninemsn Money
November 26, 2008,
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Gold surged to a record Australian dollar price above $1250/oz early this week as the American dollar price edged up to above $US800/oz and the $A sagged to $US0.62.

This is encouraging news for low-cost Australian producers or emerging producers with sufficient cash backing to meet planned production expansion.

Citigold will be a top beneficiary

Citigold Corporation (CTO.AX


CITIGOLD CORP27 November,200827/11/2008 11:12 Sydney, Australia.
Price Change % Change
0.220 +0.005 +2.330%

Company overview
Real-time quote
CTO.AX , 0.220, +0.005, +2.330%) stands out as it cranks up production on Australia’s largest high-grade gold deposit within the historic Charters Towers goldfield in North Queensland. Citigold sits on a resource of 10 million oz of gold within 22 million tonnes of ore grading 14gm/tonne.

Better, at the end of its September quarter, the company had $9 million in cash at bank plus an arrangement in place for $35 million in committed cash to fund the continuing development of the Charters Towers mine.

Dubai Ventures Group Ltd has committed the new capital and will ultimately take an 18% stake in the company. The Australian-listed Citigold took a secondary listing on the Dubai in March, 2007, as a consequence of that Arabian Gulf State being a major centre for physical gold sales.

Strangely, in last week’s continuing market meltdown, Citigold shares lost 1.5c over the week on a turnover of 4.55 million shares to close at 18c. That’s just 3c above their low for the past 12 months and well below the year’s high of 47c.

At 18c, Citigold carries a market capitalisation of $133 million, with cash resources representing nearly one third of that.

The company has expectations of greater international recognition over coming months, particularly if the $A remains heavily discounted to the $US while the gold price remains stable or firms.

On Monday of this week, Citigold announced to the ASX the company was now listed on the NASDAQ Dubai, following the re-branding on November 18 of the Dubai International Financial Exchange. Nasdaq OMX Group, the world’s largest exchange company, also listed its shares on NASDAQ Dubai on November 20.

Managing-director of Citigold, Mark Lynch, said those moves reflected the growth of Dubai as an international financial centre. “Citigold’s recent $35 million capital raising with the Dubai Group demonstrates our company’s long-term commitment to the major gold and financial centre. Through re-branding the international stock exchange, I believe that will expand exchange trading liquidity,” he said.

At the same time, Citigold’s chairman, John Foley, was one of a select few who presented at Nasdaq OMX Group’s first Middle East Investor Conference last week. The landmark conference in Dubai was aimed at giving the Middle Eastern investor community an opportunity to meet with and learn about more than 30 listed companies, which included such global giants as Anglo American Plc and Cisco Systems Inc.

In the forthcoming edition of Money Magazine (due to reach subscribers and newsagents next week), Citigold is one of three stocks showcased for recovery potential in the New Year.