Hey guys. looks like im back to precious metals. The big drop in AUD is a big plus. With USA looking set to lose its AAA rating, possible QE3 and italy defaulting... gold looks promising. IMO gold will not correct as bad as 2009 (probably will stay above 1500$) and the fall in AUD vs USD will help cushion it. Here is my pick. Research report on Mutiny gold http://www.mutinygold.com.au/images...11.pdf?phpMyAdmin=HIjnLSMnfj2QXlcnExfUhiruLD5 Previous ann on doubling production target to 100k oz and recent excellent drilling results seem to have gone unnoticed. Located in WA Low cash cost 550$/oz (not including silver credits) and 52m Capex Set to produce end of 2012. Recent CR of 9.6m at 9.6c to sophis Tell me what you think.
Why do you like mutiny over some of the other possibilities - what is your criteria for declaring something as good? For me grade has a lot to do with it, and also managment. So what are the managment of MYG like, what are they going to do with the money they mine? Have they had a history of meeting things on time and on budget?
Low cost. First two years open pit. So even at 900 USD it is still viable. Have their own plant. Excellent drilling results out so far. http://www.mutinygold.com.au/images/stories/110621_Deflector_Northern_Extension_Drilling_Results.pdf Management seems decent. Good at informing the market and promoting the stock. Drills seems to be on time with minimal delays. Only thing i thought was stupid was that they announced plans to make a big purchase to increase stake in the mine months before the CR. This lowered the SP as people sold fearing a CR resulting in higher dilution. However both CR were heavily oversubscribed. I intend to sell before they start mining. I like it because the recent CR has affected the SP. Those who got into the SPP (Hartleys clients) sold for quick profit. This led to many of the good announcements go unnoticed. Given the big slump in markets this is very undervalued as gold hits an all time high in AUD.
I did some reading and I agree with what you are saying. As far as I can tell they dont have a mining engeneer on their board - do you know if they have appointed a mining engeneer or consulted one to see if practically they can achieve (not just target) that level of production. They have a Chemical engeneer and a metalurgist so im not so worried about grades and recovery rates. Im not trying to smack em down, im just asking if you know.
"The acquisition included the current 590koz Au high grade Deflector resource and existing infrastructure including a 300ktpa mill, accommodation, offices, power plant, water and haul roads. Notwithstanding the refurbishment required at the mill to process to Au-Cu ore, the infrastructure already in place has resulted in a significant capex and time saving." Sorry just re-read this - that partially answers the question
I think they might bring aboard a mining engineer or contract one when production is nearing. In a normal market those announcements would have been astounding... and yet the SP is trading below CR while AUD gold is at record highs. CR usually suppresses the SP for a few weeks/months. Only thing i don't like is the production date which is end of 2012. But with so much going for gold.... they just need an average price of 1500$ usd to net 100m/year.
