Castlemaine was on tv last night. Some documentary about gold and how previous mines are being put into production due to record gold prices. Can't recall which channel. They were very optmistic as the price they were building the project on was originally 1100$.
Have to admit to buying a fairly large chuck of these. I first started buying them for daytrading potential but think now they are a far better buy and hold for a while. I think they have real potential once we get the end of financial year out the way and get near first production. All their numbers look great. malachii
nice find hobo-jo love that guy near the end saying we at at the high of gold prices and it will come down now. wonder why he seems so nervous when he talks? almost as if someone had a gun to his head
Nah, he's just very, very aware that if he calls it wrong then everyone will think he was a total idiot.
Yes, Laughing his arse off. If they hit that gold as planned at good costs it will be even happier times for them.
Well the Bernanke has pretty much outlined he's ready for (ahem) QE3. "The Fed is ready to respond to deflationary threats with monetary policy response" Could be an exciting coupla months....
Looks good for the future: Commissioning Commences Castlemaine Goldfields Limited (ASX:CGT) is currently re-developing the Ballarat Gold Mine, with activities focused on underground mine development and gold processing plant re-commissioning such that first gold bullion production can be delivered on schedule in September this year. Approximately 3,500 tonnes of low grade gold ore has been mined to date and bought to surface to provide material for the processing plant re-start. The gold processing plant, kept idle and on care and maintenance since early last year, underwent a minor refurbishment over the past two months. Commissioning successfully commenced last week, ahead of schedule. It is now planned to run the plant on dayshift only throughout August to bed the process in and afford the newly recruited plant operators time to learn the circuit, under the guidance of more experienced employees. As the underground mine ore production ramps up, the processing plant will then revert to a 24 hour operation, 3 to 4 days a week, in September. First gold bullion production will occur later that month.
CGT (IMHO) is a great buy at the moment because they are about to do their first pour and the price is being held back by the share consolidation (10 for 1). malachii PLEASE NOTE: I HOLD A BIASED VIEW!!! I OWN A LARGE HOLDING IN CGT AND HAVE BEEN AND WILL BE INCREASING IT OVER THE NEXT FEW DAYS/WEEKS.
So you guys are saying that, in your opinion, the current share price does not reflect the true value of the company and you believe that it will at some point, by increasing, somewhere around the first pour Sept/Oct timeframe? How would a potential fall in the Gold Price affect this? Would it be likely to send the price lower regardless or would there be some offsetting due to the fact they are almost ready to go? Is there generally an increase in share price when a company actually starts producing and wouldn't investors realise this and price it in beforehand? Any insight appreciated.
Yes IMO current share price is a good place to buy in at and I think it will go up around 1st pour. Fall in gold price (barring sub $1000/ounce - safe bet I think) again IMO would just slow the rise up but I still believe it would rise. Yes there is generally a rise when a company like this starts producing because no matter what the updates say people are still nervous with small cap stocks - the trick is the production reports after they start producing below expectation results can hit the SP again hard (and above conversely on the upside) so if your in for a short time after production starts is often the jump off the ride point.
Hawkeye, THIS IS MY OPINION ONLY!! CGT copped downward pressure earlier this year due to the share offer they had which was badly timed with the downturn earlier this year. This left quite an overhang of unwanted shares in the market place which is still capping the share price below 5 cents. On top of this they have just announced a 1 for 10 share consolidation to do 2 main things: 1 to reduce the total number of shares out there and 2 to bring the price up to the 50ish cent level. The reason this was done was that to be taken seriously by the big money - it looks better to have fewer shares that are worth more than being a "penny dreadful". However - this will apply short term pressure as a lot of traders and 'penny dreadful" type investors will start to exit and the mainstream investors wont notice it yet and the funds who aren't allowed to by shares below 10-20 cents can't buy yet. That's the bad news. The good news is that when they begin the first pour - they move officially from being an explorer to being a producer. This changes the mind set of a lot of investors and also means that funds that have restrictions on buying explorers can start to consider it as an option. It will also provide them with a lot of publicity as well as proving that they "can do it". On top of this you have the good news coming through during the end of the reporting season when it is quiet and during the lead up to the "Santa effect". Not bankable pluses but they are there nonetheless. As far as the price of gold goes - their cost of production is somewhere around the $800/oz from memory (someone will pick me up on this!) so even with a decent fall in the gold price they will have some insulation. Sure - if gold drops to $1000 their share price will take a hit but they should still be producing for less the sale price so there is some cushioning. On the other hand if gold "goes to the moon"............ As I said earlier - I AM BIASED because I have quite a large amount of "skin" in the game on this share and am buying more. This is also MY OPINION ONLY - DO YOUR OWN RESEARCH - YOUR DECISION MAYBE A LOT DIFFERENT TO MINE!! malachii PS Did I mention that this is MY OPINION ONLY!!!
if the total cost per ounce is over $1000 that wont really look good in this market - people want less that $700 /oz costs (~$500 prefferable) to have a clear enough margin, I see risk in CGT and im surprised you love it so much, I just dont think i quite get why?
Considerable scope for resource growth, Australian gold junior soon to be producing in Australia (security), Good management (the pickup of the facilities cheap was a big part of me wanting in - astute management is hard to find), decent margin and well priced buy in price IMO are why I bought in.
