5c - the price of a coming gold producer Robin Bromby From: The Australian November 12, 2009 3:31PM
shares in Gold Anomaly were trading up 1.5c at 4.7c, although they did hit 5.5c earlier.
Ecuse me? Here is a company that this morning reported it has ordered an integrated gravity gold processing plant for its San Chico prospect in Brazil. It will be over there and in working order ready for the first gold production in four months’ time. So here we have a company on the brink of gold production and its stock has trouble breaking through the 5c mark!
Remember, this is no longer the cash strapped Gold Aura before its merger with Anomaly Resources (and changed its name), the latter an equally obscure company that had been floated on the small stock exchange in Newcastle.
Pure Speculation flagged the merger months ahead of its happening and pointed out the pedigree of the main mover behind Anomaly.
Start of sidebar. Skip to end of sidebar.
.End of sidebar. Return to start of sidebar.
By May this new combined outfit will be producing - if all goes well - at the rate of 20,000oz a year in Brazil at a cash cost of $340/oz. Which leaves a very comfortable margin. And will, as intended, generate cash flow for other projects, although the two biggies will probably attract deep-pocketed farm-in partners.
One of those projects is the potentially enormous Crater Mountain gold project in Papua New Guinea that Anomaly brought to the table. The other is the also potentially huge Croydon zinc-tin-copper-silver discovery in far north Queensland.
That’s a lot of bangs for your buck - or, in this case, for your 5c.
But it is just one more sign that it is a hard battle to get investor interest in gold stocks.