resources boom has just begun for goldminers, page-3

I have a few more points to add Messytimes;

“We're buying gold juniors that are trading at discounts to their appraised (net present values) of between 30 to 50 per cent," Whitten said. "You don't get opportunities like this too often.”

ABU definitely fits into that category and I expect it will show a much bigger discount on the revised scoping study and bigger again when they do a study on u/g mining.

”Whitten is referring to the disconnect between a historically high gold price and the sell down in many gold stocks that has halved many in the past year. This is primarily due to the risk that they won't get the funding needed to develop their goldmines.”

That is definitely not a significant issue for ABU with $27mill capex, $22mill in the bank and a mc of a decent size such that any potential cr will create very little dilution. Also the scoping study numbers would easily give ABU scope for bank funding.

“Coates says that a junior gold company needs to have a good cash backing.”

We have that.

“There are many different criteria, but low cost of production is a key one. For Australian gold companies the average cost of production is about $800 an ounce, and anything above this Whitten says he would “avoid like the plague”. He invests in companies in the $400 to $500 an ounce realm.

I think even more important is ABU’s very low capex needs, but good to have both very low capex needs and very low cash costs.