"The only way to get past this is if the revenue increases by say $1.5M from $7.2M to $8.7M and this can only happen if the Gold price in AUD goes up 20% or production goes up 25%, or a bit of both..."
Well, since that was written, the Aud gold price is up 16%
The price of gold is garanteed to rise more or less continuously over the next several years IMO, possibly into bubble territory. The only issue is - what will the exchange rate be. The $US is spiking at the moment due to the Euro's problems, but longer term It too must decline. China will probably come unstuck when their markets in the US and Europe weaken, leading to the Aud coming off too. (Did you see the ABC news last night - Kohler had a chart that showed an almost perfect correlation between our $ and the price of copper)
We've all been trying to push-start this old tractor for years, but there's still a reasonable chance a purring motor is just over the crest of this hill IMO - if we don't run out of money first!
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CTO Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
