Hi Fishhead, i think you are right about Ampella being...

Hi Fishhead, i think you are right about Ampella being overbought, i simply dont understand the demand for this stock at these levels..I bought into AMX a few months ago at about 90c, this stage, directors were selling and i was a bit nervous about my investment, i sold in may when amx came back to about 1.40, and since seen it run to just over $2

to be honest, i thought it was getting a tad expensive when i got in at 90c, but the hype around amx, the sentiment and gold price ensured it would keep rising, not to mention their highly favourable gold targets and intercepts, but now, at almost $2, this has got to be a joke??

i have done some research into some gold stocks onthe ASX of late, and my picks are SBM, GDO, CGX, RSG and PRU to a lesser extent as well as OGC

but let me take you back to GDO, my top pick.


GDO has about 13m OZ in resource, a huge deposit called Modder East in which has recentltly began production, at 40k oz p.a currently, ramping up to a peak annual rate of 140-200k oz within the next 12 months

the most exciting part of this, is that cash costs are less than US$300 oz, one of the cheapest operations in the world

there are a few issues such as the current debt facility that requires re structuring and the local labour force, where issues halted mine proceedings recently, but this seems to be rectified.

GDO also are beginning to drill another target which potentially may be bigger than modder east

after all of that, now comes the best part....GDO are trading with a MC of 225m........yes thats correct, some 80m less than Ampella


the market amazes me sometimes

which one would you rather buy??

IMO, there is millions of ounces of further gold discoveries priced into amx at current levels, with many more years of drilling required, amx to me seems like a no go for me atm

would enjoy hearing some thoughts about this..i know there are, obviously, a lot of amx fans out there, so please tell me why you would rather buy into amx than any other gold stock for that matter

SBM was my second gold pick, and i know the RSPT will affect them, so i have not included this affect in my research nor the recent 15% rise :-) but compared to amx, they are such a better proposition

with 8 odd million ounces of gold, 200-400k oz p.a production rate and australian based, yet, only costs an extra 250m more than amx