GYM gympie gold limited

Gympie Gold - looking interesting

  1. 9,081 Posts.
    Here is the text from the "market mad" report on GYM
    (sorry but I don't know how to post the chart alluded to in the report)

    Gympie Gold reported a loss of $2.5 million for 2001/2002.
    Having said that, the company is fast moving to a position of profitability.
    I won't speculate on future profitability, but it does seem to be inevitable.
    Notably, management is implying a major result for longer term shareholders.
    Southland Coal and spot gold prices are the key to the equation for GYM.
    If the Gympie Goldfield can evolve further, that will be the icing on the cake.
    Regarding the near term profitablility outcome, Southland is probably the key.
    Despite difficult conditions during the September quarter, it is now back on track.
    Given that Southland lost $2.1 million last year, the turnaround is important.
    Recent guidance has been provided by the company regarding Southland.
    Specifically, the company has said that Southland will be profitable later this year.
    If Southland does bring home the bacon, the story will begin to read very well.
    Last year, total group revenues increased by 76% to $85 million.
    For this year, the companies declared revenue target is $140 million.
    I like the sound of that, and management does appear well focused.
    Regarding the key levels, I'm looking at 0.72, 0.80 [B] and 1.00.
    If above line B [0.80], the target will be 1.00.
    If B is not surpassed on a closing basis, then the target might again be 0.72.
    I'm assuming a bullish outcome for Gympie from hereabouts, but B is the key.
    Gympie is not my top gold selection, but as I say, the story does read well.
    For those who do choose to have a lash at GYM, be focused on 0.80.
    In other words, be long from above 0.80, but be very wary if below there.
 
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