Hey drunkI see we think a like, I posted this a couple of weeks...

Hey drunk

I see we think a like, I posted this a couple of weeks ago to see whether anyone else thought ALD was now a likely takeover target.

"What I find interesting is that there has been no discussion about the longer term potential of ALD and the possibility of it being a takeover target, imo, due to the larger and lucrative sulphide deposits which are supposed to exist beneath the oxide ALD will be mining.

It's been speculated that other miners have conducted site visits at Simberi with interest in these sulphide deposits - which could hold up to 1 million oz's as reported on ALD's website."

On another note this is from a recent London brokerage report:

"It is worth noting that we currently have a FY08 (end-June) gold price forecast of US$710/oz. The year-to-date average since 1 July 2007 is now US$735.7/oz and we will review our forecasts later this quarter, particularly with the gold price recently moving back above US$800/oz and indeed US$850/oz last week. If we were to use a flat gold price for FY09 of US$850/oz our net earnings figure would
increase 30% to US$40.2m, offering a one-year forward P/E of 6.2x.

The Simberi oxides offer not only immediate cash flow, but they can also provide the exploration budget for the group’s other exploration ground. The potential for
increasing the current oxide resource is high and the sulphide anomalies need further investigation. The neighbouring islands of Tatau and Big Tabar have extremely attractive indications of large-scale caldera formations. There are three rigs on-site at Simberi, partially to develop the oxide resource base on Simberi, but also to progress the understanding of the known sulphide occurrences. A sulphide resource of 0.5Moz has been delineated under the designated area for the main Sorowar oxide pit. A clear magnetic low, suggesting extensive
hydrothermal activity, extends northwest and southeast of this known sulphide zone. All-in-all, a highly prospective land portfolio."

So effectively the P/E of 6.2x puts the sp at $2 in a years time. Add in the potential at Big Tabar and Tatau and I think it will have a lot further to go from there.