IMO TO should be in excess of 2.5 billion this is my...

IMO TO should be in excess of 2.5 billion this is my reasoning

GDO has a market cap of approx $343m at today's closing price of 42.5c on the ASX. With a project profit in excess of 120 Million for 2011 at gold (1400) and production (120000) staying at these levels. Give a PE of less the 3 that is reason it is easy takeover target. GDO is planning a production in excess of 350000 in few years time plus goliath gold production with the biggest reserve in any junior 24 million OZ it is going to take a very big offer to inveigle many shareholders to part from their holding. Yes at this stage there is still ambiguity about an official offer will be made. I would not be surprised if the offer is in excess of 2.5 billion based on 20 PE on 2011 projected profit bcoz with a PE of gold producers is around 20 on ASX

the biggest plus point for GDO for suitors is the life of the mine and resource size we r talking abt 24 million Oz, yes it is not measured but still it works out to only $100 per Oz. With funds flowing it is easy to increase production I use to own a TSX gold junior in six years it increased it production from as little as 300000 to 3 million oz and has become one of the largest gold producer in world they did this with cash flow and growing organic and inorganic, so suitors would like the foundation GDO has got


I would be surprised if we see a billion dollar company in few weeks time even without a takeover just based on projected profit based on present gold price then ASX can give a real speeding ticket....