market should reward gold production figures

Judging by the market's pat on the back to Triako yesterday for a positive production update (Triako's announcement of its bumper gold production saw the stock rise 4%), GTM's recent downtrend could likewise reverse when its next gold production figures are announced.

While TA proponents have probably read the short term trend correctly (mildly downwards) for GTM, those who like a few fundamentals in the mix of their decision-making will probably sit tight.

Two factors appear to have been overlooked by sellers during the recent downtrend:
1) prudent hedging against a strong Aussie dollar has delivered GTM returns A$50 per oz higher than most other producers.

2) ore-body richness to date has exceeded forecasts by around 10% (12.4 g/t compared to the 11 g/t forecast)

In my view, GTM is ideally poised to ride upwards with the bounce in the gold price. It is an expanding producer with excellent potential to upgrade ore reserves, particularly at Malbec and Cat's Whiskers and has the cash (over $6m as at end Sept. last year) to maintain an active drilling programme.

I am hopeful that the next drill results or gold production figures should provide the fillip the stock needs to resume its long term uptrend.

I hold. Conduct your own research.

Gupper.