CTO - Citigold Corporation

[So_Cynical]

That 10m oz is of no value if it remains in the ground, and on that basis one can only conclude - woof, woof... Sorry to say that I once held this for a few months but managed a dignified exit

If we look on the brite side - glass half full etc...at the rate CTO are producing Gold (about 20000 ounces per year) they have a mine life at warrior of about 250 years....also with the SP currently at about 20% less than the share purchase plan offer...existing holders who wisely choose not to participate wont get diluted.

Lots of time for Gold to see $50000 an ounce. :bonk:

 

[oldblue]

If we look on the brite side - glass half full etc...at the rate CTO are producing Gold (about 20000 ounces per year) they have a mine life at warrior of about 250 years....also with the SP currently at about 20% less than the share purchase plan offer...existing holders who wisely choose not to participate wont get diluted.

Lots of time for Gold to see $50000 an ounce. :bonk:

But that's just the problem, isn't it?

Shareholders who don't participate - and clearly that seems the best idea - will be diluted by those who do. More shares on issue equals smaller chunks of the business.

Disc: Not holding.

 

[Sean K]

If we look on the brite side - glass half full etc...at the rate CTO are producing Gold (about 20000 ounces per year) they have a mine life at warrior of about 250 years

he he, classic SC

Maybe they should cut production back to 10k p/yr for a 500 yr operation?

They are still yet to factor in the 50m ounces they predict are below the current resource estimate also, so that will add another 1250 years mining at 20k a year.

 

[sion]

This company has crazy management. ON one hand they say with distain "the stock market does it's thing" on the other hand they need to raise capital frequently the purpose of which seems to be to research the perfect method to extract gold from this deposit.

They are technicians not business men. They are more concerned with playing in the sand pit and drawing a salary then establishing shareholder value. This will very soon come home to roost. The shareholders are going to give them the sack.

 

[So_Cynical]

The shareholders are going to give them the sack.

Bring on the meeting...you got my vote to be honest at this point Humphrey B Bear would get my vote if he was standing against this lot of total incompetents.

 

[ColB]

Originally posted by So Cynical

"Bring on the meeting...you got my vote to be honest at this point Humphrey B Bear would get my vote if he was standing against this lot of total incompetents."

If it wasn't so serious it'd be funny. I remember buying this stock at around 44 cents a couple of years ago and bailing out at a loss a short time later and thank me lucky stars I did.

With the improvement in the price of gold the freefall of this one is astounding and it's chart is looking beautiful for an entry of around 5 cents in 2-3 months as it continues on its merry way. Only question is, why would you?

 

[travwj]

Interesting announcment by CTO today. MOU with for a JV with a chinese gold mining/exploration/processing company. Price is up and volume is up, lets see if it closes above 10c...could be a buying op.

I don't hold CTO, and dunno why i watch it...but lets see where this may go.

Trav

 

[So_Cynical]

Interesting announcment by CTO today. MOU with for a JV with a chinese gold mining/exploration/processing company.

Read all about it http://www.citigold.com/viewasxrelease.asp?Releasenumber=328

The Chinese mob is called, Henan Jinqu Gold Company Limited...a little googling revealed

http://www.jinqudiamond.com/htm/indexen.asp

i think this is there site :dunno: its a little hard to tell....they claim to be the "leading" Synthetic Diamond manufacturer in China.

 

[Sean K]

Read all about it http://www.citigold.com/viewasxrelease.asp?Releasenumber=328

The Chinese mob is called, Henan Jinqu Gold Company Limited...a little googling revealed

http://www.jinqudiamond.com/htm/indexen.asp

i think this is there site :dunno: its a little hard to tell....they claim to be the "leading" Synthetic Diamond manufacturer in China.

Well, interesting. The City area is just a small part of the overall Charters Towers development, but obviously significant if they thought it was going to be producing 200k oz pa.

And it's going to be a 'super' mine. lol

ANNOUNCEMENT

Citigold signs MOU to develop Charters Towers City mining area

4 March 2010: Brisbane, Australia – Citigold Corporation Limited (Citigold) (ASX:CTO, FSE:CHP) advises that it has signed a non binding Memorandum of Understanding with Henan Jinqu Gold Company Limited (Jinqu), China, to form a joint venture company to develop the City mines of Citigold’s Charters Towers gold project.

Under the terms of the MOU Jinqu may acquire up to a 50% interest in the joint venture company which will own granted mining leases with permits to mine and associated infrastructure, containing a gold Mineral Resource of 1.8 million ounces*.

Henan Jinqu Gold Company Limited’s main industry is the exploration, mining, processing and smeltering of gold. The company is also engaged in research, development, production and sales of synthetic diamonds. The company is a member of the Shanghai Gold Exchange.

Citigold’s Gold Production Plan for the design and development work has been undertaken with the aim of producing 200,000 ounces per annum from the City mines. The City includes the major Sunburst, Brilliant and Day Dawn reefs to be developed together as one ‘super’ mine.

Citigold has internally budgeted that the development of the City operations should take 24 months and cost up to $70 million. The development of the City is to be separate from the 100% owned Warrior mine and the existing 340,000 tonne capacity gold processing plant.

 

[So_Cynical]

Citigold up 20% today :alcohol::bier: everyone must be thinking its that Chinese mob buying some goodwill, or even better looking for a board seat. i dare not say the T word.

 

[refined silver]

The only plus with CTO management is that they own a fair few shares. That doesn't guarantee good management for sure, but it's one positive.

Am about even on CTO with buys and sells.

 

[ColB]

What a cracker! A few posters here including me just spent the last coupla weeks bagging this sideshow and look what happens....up over 25% in the last week. Good work Refined Silver, you'll be able to buy back in at sub 11 within the week.

Hopefully for those hanging on my cynicism will backfire [again] and see the sp rocket

 

[So_Cynical]

I've got a sell order in at 13.5 im probably being over optimistic. still if tomorrow is a repeat of today then ill be reasonably happy to be out with a 65% (approx) loss.

 

[greebly24]

I am a newbie and would appreciate opinions. Still learning. Read about leverage to rising gold price with mining shares. Liked 20 companies. Picked one to buy - CTO Based purely on resource size

Bought CTO at 0.28. Watched price drop. Learnt about "averaging down". Bought more at 0.25 without question. Watched price drop to 0.18 when I was offered capital raising at 0.16. Never done one before but sounded good to a newbie so I over-participated. It averaged my buy price down to 0.22 but tied up 20% of my total capital.

Since then watched sp get to 0.09, now back to 0.11. Still looking at -50% loss (or -10% of my portfolio)

Opinions greatly appreciated. Wish I'd read this forum before I bought CTO

 

[Sean K]

I am a newbie and would appreciate opinions. Still learning. Read about leverage to rising gold price with mining shares. Liked 20 companies. Picked one to buy - CTO Based purely on resource size

Bought CTO at 0.28. Watched price drop. Learnt about "averaging down". Bought more at 0.25 without question. Watched price drop to 0.18 when I was offered capital raising at 0.16. Never done one before but sounded good to a newbie so I over-participated. It averaged my buy price down to 0.22 but tied up 20% of my total capital.

Since then watched sp get to 0.09, now back to 0.11. Still looking at -50% loss (or -10% of my portfolio)

Opinions greatly appreciated. Wish I'd read this forum before I bought CTO

Nice capital loss to lock in for this FY maybe?

On what I can work out I doubt they can turn this around and I think they'll go into administration shortly.

Some serious questions need to be asked of management and their claims.

I'm still waiting for the 50m ounces down there to be discovered. LOL

 

[So_Cynical]

I am a newbie and would appreciate opinions. Still learning. Read about leverage to rising gold price with mining shares. Liked 20 companies. Picked one to buy - CTO Based purely on resource size

Bought CTO at 0.28. Watched price drop. Learnt about "averaging down". Bought more at 0.25 without question. Watched price drop to 0.18 when I was offered capital raising at 0.16. Never done one before but sounded good to a newbie so I over-participated. It averaged my buy price down to 0.22 but tied up 20% of my total capital.

Since then watched sp get to 0.09, now back to 0.11. Still looking at -50% loss (or -10% of my portfolio)

Opinions greatly appreciated. Wish I'd read this forum before I bought CTO

Well at least you learned that 4 average downs is about 3 to many....comes a time with all bad decisions when you have to bite the bullet and do what has to be done....lucky for me i have a big winner to counter my biggest loser CTO.

GL greebly

 

[greebly24]

Thanks kennas and So_Cynical for the replies.

Despite the fabled 50m oz resource and a potential 1500 year mine life (bad joke), I think I will have to take a loss on this one.

Still reading and learning every day. Came across an article about not averaging down. It was written by a guy in the US who bought Enron at $100 then it dropped to $90 so he averaged down. The guy averaged down on every $10 drop until it hit zero. D'oh!

Averaging down sounds like the Martingale system in gambling. Double your bet every time you lose. Exponentially bad.

Then I read about "averaging up". The idea was rather than putting your capital into a losers, hoping to get your money back, instead you put more capital into winners. What do you reckon?

 

[oldblue]

Also known as "Reinforce success"; "Buy into an uptrend"; Keep your winners and sell your losers"; "The trend is your friend".

I try to follow this method using trailing stops although it's sometimes hard to enforce the sell discipline and the temptation to sell a winner is always strong. Requires close monitoring and adherence to one's own investment rules.

 

[So_Cynical]

Still reading and learning every day. Came across an article about not averaging down. It was written by a guy in the US who bought Enron at $100 then it dropped to $90 so he averaged down. The guy averaged down on every $10 drop until it hit zero. D'oh!

Averaging down sounds like the Martingale system in gambling. Double your bet every time you lose. Exponentially bad.

Then I read about "averaging up". The idea was rather than putting your capital into a losers, hoping to get your money back, instead you put more capital into winners. What do you reckon?

Successful averaging down can be done, im proof positive of that, now im not 100% sure about whether that was dumb luck or just great decisions or a combo of both i don't know :dunno: but i do know my averaging down saved my bacon at the bottom of the GFC.

Just want to point out that while i thought about averaging down into CTO i never did...and i certainly never average heavily into rubbish stocks, i decided some time ago that CTO was rubbish.

As for averaging up (pyramiding) i think its completely nuts, but understand how it works, particularly in a runaway stock with a stop in place...as im not a trader i have no interest in averaging up....the trend is also my friend its just that the trend i favour is a down trend.

to each there own.

 

[Sean K]

Successful averaging down can be done, im proof positive of that, now im not 100% sure about whether that was dumb luck or just great decisions or a combo of both i don't know :dunno: but i do know my averaging down saved my bacon at the bottom of the GFC.

Just want to point out that while i thought about averaging down into CTO i never did...and i certainly never average heavily into rubbish stocks, i decided some time ago that CTO was rubbish.

As for averaging up (pyramiding) i think its completely nuts, but understand how it works, particularly in a runaway stock with a stop in place...as im not a trader i have no interest in averaging up....the trend is also my friend its just that the trend i favour is a down trend.

to each there own.

It probably all comes down to your investment philosophy and what works best for you. Some people have time to invest in analysing every stock on the ASX, find the truly undervalued ones, and go overweight in them. Like a YT did. And be smart enough to get it right more times than not. For the rest of us, who are more lay investors, diversifying in some way will eventually pay off. Being overweight in this turkey over the past year or so was not a good idea.