1. Most Discussed
  2. Gainers & Losers
CTO 1.0¢

charters towers gold valuation

  1. BlackGold

    7,063 Posts.

    Everyone seems to be wondering why CTO has jumped recently .. so would i BUT if all what the directors have been telling us is true, then CTO should be a $1 stock!

    The problem seems to be a lack of confidence in the directors, project and gold prices.

    The directors i cannot comment on but CTO has had a very chequered past, going into receivership and out again .. not many company can do that! The company has spent quite a bit of money so far with little to show for it. Mining hard rock veins isn't cheap.

    On the positive, they apparently have(?) 15M Oz POTENTIAL, not sure if that's proven or possible? previous mining has shown there was alot of gold in the surface veins, whether these rich veins go deeper is still to be confirmed. Drilling up reserves with gold veins is very difficult.

    Also they have new machinery that is designed for cost effective mining of narrow gold veins. whether they live up to expectations is still to be tested.

    On the gold front, i suspect we might be in a period of lowering US$ and a slowly recovering gold price. But this will probably be offset by a rising A$. If you believe the gold bugs, the US economy is on the verge of collapse and gold will shoot to $1,000 Oz!

    if we take a very rough valuation of CTO, i get numbers like this;

    Say conservative 5M Oz 2P, by A$100 NPV that equals A$500M, or $1.60 per share, or 80c-$1 with a 50% discount.

    Of course proving 5-10+M Oz reserve is going to be difficult although history says it's possible. The $100 inground value is very variable as cost of extracting the gold is still be determined accurately (to my satisfaction). Hopefully the new technology will work!

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.