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CTO 0.7¢

the run has just begun...here is why...

  1. blueballs

    8,410 Posts.
    41
    Big buyers starting to move into CTO,this has to be one of the best potential gold specs on the aussie market that is yet to have woken up.

    Thought you might be interested in this analysis on Charters Towers Gold
    Mines (CTO).

    Also check the gold price to ctos price...they beleive if gold can get to 700 an ounce cto will be worth near on $7 per share....

    You might be particularly interested in Table 5, a comparison of all the
    gold miners on the ASX. CTO has the cheapest gold in Australia ($9/oz), the
    third largest Australian deposit in Australian ownership (15 Moz, at least
    6.8Moz mineable), and are about 9 months from starting production.

    The analysis shows that we could reasonably expect the CTO share price to go
    from the current 20c to around 70c - 80c soon after funding (currently being
    negotiated) and $2.50 within five years.



    Table 5: Gold Company Comparison — Companies on the ASX that are, or soon will be, producing gold
    Share
    Price
    Mkt Cap Moz Mkt Cap /
    Mineable Oz
    Production
    (A$) (A$m) JORC JORC Gold Mineable (A$) ('000oz)
    Reserves Resources Potential Gold
    Predominately from Mines In Australia
    Charters Towers Gold Mines 0.195 64 1.1 15.0 6.8 9 0
    Ballarat Goldfields 0.082 33 0.7 6.0 2.7 12 0
    Gympie Gold 0.445 91 0.8 6.0 2.7 34 60
    Gindalbie Gold 0.088 9 0.1 0.4 0.3 36 50
    Bendigo Mining 0.215 200 0.7 12.3 5.5 36 0
    Westonia Mines 0.465 23 0.9 0.5 42 0
    Oroya Mining 0.135 14 0.5 0.3 45 0
    Sedimentary Holdings 0.200 45 0.8 2.0 0.9 50 0
    Herald Resources 0.500 26 0.8 0.5 52 25
    Sons of Gwalia 3.010 502 4.6 14.0 8.4 60 600
    Troy Resources 1.890 90 1.5 2.0 1.5 60 85
    Northern Gold 0.270 40 0.2 0.8 0.5 82 0
    Equigold 1.490 221 1.6 4.1 2.5 89 85
    Newcrest Mining 9.750 3,182 28.1 52.0 31.2 102 645
    Croesus Mining 0.680 213 0.6 2.8 1.7 127 290
    Perseverance 0.275 71 0.9 0.5 136 7
    Dominion Mining 0.530 40 0.5 0.3 144 60
    Rand Mining 0.700 27 0.1 0.2 0.1 208
    Sipa Resources International 0.255 52 0.2 0.2 0.2 349 58
    Dalrymple Resources 2.590 183 0.3 0.8 0.5 381 0
    St Barbara Mines 0.087 35 0.2 0.1 391 120
    Triako Resources 1.650 55 0.1 0.2 0.1 414 46
    Giants Reef Mining 0.083 61 0.2 0.1 440 0
    Predominately from Mines Outside Australia
    Durban Roodepoort Deep 4.290 680 16.3 70.9 42.5 16 1,100
    Emperor Mines 0.650 73 1.0 4.6 2.8 26 140
    Climax Mining 0.175 50 4.0 1.8 28 0
    Bolnisi Gold 0.270 46 2.1 1.3 37 86
    Pan Australian Resources 0.100 27 1.0 0.6 45 0
    Red Back Mining 0.440 51 1.9 1.1 45 0
    AngloGold 12.200 13,957 68.3 346.8 208.1 67 5,939
    Lihir Gold 1.590 1,816 16.7 41.1 24.7 74 607
    Lafayette Mining 0.120 36 0.5 0.7 0.5 76 0
    Centamin Egypt 0.195 98 2.0 1.2 82 0
    GRD 1.400 287 2.8 5.2 6.2 3.1 92 170
    Resolute Mining 0.910 150 1.5 1.5 98 246
    Dragon Mining 0.150 28 0.3 0.4 0.3 110 0
    Newmont Mining 6.380 22,930 87.3 163.0 97.8 234 7,500
    Ivanhoe Mines 6.700 1,519 10.5 13.0 6.3 241
    Sino Gold 3.450 386 0.3 2.6 1.6 248 100
    Kingsgate Consolidated 3.860 281 0.7 1.8 1.1 258 155
    Oxiana 0.790 746 0.9 2.0 1.2 621 142
    Source: Company websites. Share prices 2 September 2003. Gold figures are for May 2003 and a gold price around US$300.



    Investment
     Comparison With Other Australian
    Gold Companies
    CTO has the third largest gold deposit in
    Australia of any Australian company, after
    Newcrest and Sons of Gwalia.
    CTO has the cheapest gold in Australia of any
    Australian company, in terms of market
    capitalisation per mineable ounce.
    See Table 5 (above).
    Mineable Gold is an estimate of the amount of
    recoverable gold in the company’s tenements, at
    around current gold prices. It is equal to the
    maximum of:
    • reserves,
    • 60% of resources (to allow for typical
    mining, economic and legal factors), and
    • 45% of published gold potential (to allow
    for greater uncertainty compared to
    resources).
    Mkt Cap / Mineable Oz is the market
    capitalization per ounce of mineable gold. It is the
    most fundamental number about a gold
    company—basically, the price of its gold. If you
    bought the whole company, you would pay the
    market capitalisation and would own all its
    unmined gold. Gold companies in similar
    circumstances usually have about the same market
    cap per mineable ounce. It plays a similar role
    with gold companies as the price-earning ratio
    plays with industrial companies.


    Table 8: Expected Earnings of CTO
    Gold
    Price
    (A$)
    Annual
    Production
    (‘000oz)
    Annual Earnings
    Per Share
    (cents)
    Expected
    Share Price
    (A$)
    480 100 4.1 0.62
    580 100 6.2 0.92
    680 100 8.2 1.23
    780 100 10.3 1.54
    480 250 12.2 1.83
    580 250 17.3 2.60
    680 250 22.5 3.37
    780 250 27.6 4.14
    480 400 20.3 3.04
    580 400 28.5 4.28
    680 400 36.7 5.51
    780 400 44.9 6.74

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