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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (39048)	5/11/2006 12:50:47 PM
From: yard_man	Read Replies (1) \| Respond to of 60925

I'll join you in the 3.40s -- I think <g>

To: patron_anejo_por_favor who wrote (39048)	5/11/2006 1:54:48 PM
From: ItsAllCyclical	Respond to of 60925

Certainly possible. What I like is that even if gold drops back to 500-550 again there are still catalysts to drive it higher. 1) Increasing production (over 150% increase from current levels) 2) Decreasing costs. Cash costs should drop to 335 this year and 330-340 next. Most of their costs are fixed. This quarter is mostly due to lower production throughput due to slightly lower grades and stockpiling of ore for later in the year w/new Biox plants. 3) Increased reserves (feasibility on Prestea underground likely by end of 2006) 4) Little additional cash needed to finish expansanion plans. Talked about on confence call that between cash on hand, cash flow and bank revolver that they should be good for at least the next 2 quarters. Many other junior mines have huge capex's associated. $1000 POG would be nice too. I'm content to wait if I have to for 5+ and beyond. If PMs and gold gets hit hard soon another trip sub $3 wouldn't suprise me, but either way it's just a question of time w/gold simply staying above 500-550. Majors like to wait till there's less uncertainty even if they have to pay higher prices. A takeout later in 2006 or mid 2007 wouldn't surprise me given it's current valuation based on reserves and potential for increases. Overall CC was pretty good. Missed the later half of the questions as my connection went down.