Hi davidoli, you're not the same David who posts on RMS, are...

Hi davidoli, you're not the same David who posts on RMS, are you?

I'm a bit puzzled about your comment that the Chinese are not interested in gold. The figures of Chinese gold bullion purchases, particularly through Hong Kong and Shanghai, suggest that China has bought more more gold in the last 3 months than in the whole of 2010, plus they are acquiring all or part of gold mining companies and explorers all over the world (Australia, South America, Africa, Asia); and as well as that, they have mandated that all gold produced in China must be retained in China (and China is the biggest gold producer in the world).

Those commenting on TAM are mainly correct, as far as I recall. TAM did did go through a bad spell and was lifted off the floor with Chinese money, then had a CR (I think Snowyjim's right - 1:30), then when the SP was on the rise they got hit by the torrential rain and had a significant loss in production, which whacked the SP again. They're now in a very good position, with improved production from 2 Western Tanami mines, and a potentially huge goldfield at Central Tanami (plus their large stake in ABU).

CGT is certainly not the first fledgling gold miner to hit early teething problems, and most that I've had a few dollars in have recovered and gone on to bigger and better things. CGT have what I've been told is one of the best processing plants in Victoria, and enough gold in their tenements within haulage distance of the plant to keep the plant operating for many years. Plus there are other companies in the goldfields who might wish to toll treat ore at Ballarat.

The company just needs the cash and the know-how to operate the mine and plant profitably. Easier said than done, but that's what we pay them for.