CTO - Citigold Corporation

[Real1ty]

Yeh, have a cousin who lives up there. I pleaded thier case to him as I saw it and he said, "they have always had a lot of problems with water, golds there but problems getting it out" like Bendigo, deep mines are always a problem. So I watch but got out 18 months ago and nothing has mde me feel inclined to go back in again.

explod,
correct me if i'm wrong please.

Isn't the issue with Bendigo in the nuggety nature and the inconsistency that creates.
The grades that were being processed just weren't living up to what they should have been as they took a lot of info from historical readings.

CTO has a very fine grain gold and from what i have researched everything is going to plan, albeit a very slow plan.

They seem to have every confidence in what they believe to be there is there and this is backed up in a couple of different sources.

I bought into this stock Wednesday and have a fair amount of confidence although i can understand the frustrations of the long term holders.

 

[trtkjd1]

Yep it has been very slow for CTO but a possible reason for this is there game plan changed from opening up Warrior at 40 000 ounces and then bringing Sunburst online at 60 000 to make 100 000. Their focus has shifted from what I can see to bringing warrior up to 100 000 by its self, this would require more access drives to be mined so as to allow multiple access to the orebody for consistant output at this level. Hence the go slow on ounces produced. The plus side to this is they get into 100 000 ounce production for a lot lower cost. The other upside I see is they must have confidence in the orebody being a lot larger than originally thought. Hey its just my theory but I've bought quite a few shares on this presumption.

 

[EasternGrey1]

management were saying this would be a large producer since 2001 and yet nothing.

bvbfan - I started buying CTO in 2005, on the basis of their reports at that time which indicated that full production would be achieved in 2009. I added a year, because even the best companies slip, and used 2010 in my calculations. And, of course, made sure there was still a large potential upside before buying.

Since then, CTO have done everything they have said they would do. If they get up around 100k oz pa by the end of this year, as seems likely, then 250k oz pa by 2010 is looking quite feasible.

It has been incredibly frustrating that over the last year or more the share price hasn't moved, but that is how the market treats you sometimes. I keep track of announcements, etc, to check that they are still making good progress, and have kept on buying CTO on dips whenever cash was available, to the point where it is now not far off my largest holding.

John Maynard Keynes once said "The market can stay irrational for longer than you can stay solvent". Well, at least I can stay solvent for a long time yet.

 

[bvbfan]

I haven't done any research on CTO since probably 2005/6.

I initially researched them when I became bullish on gold in 2002. I bought CTo around 10c but they took forever to get going and I think I took profits around 14c. They ran to about 30c but they did go back to 10c I recall.

As I don't have faith in management I would not be sticking around holding.

I have had faith in OXR management had have stuck around during the periods of sideways or decreasing shar prices.

Unfortunately the good gold stocks on the ASX are few and far between especially at the junior end of things

 

[EasternGrey1]

Looks like we got our answer today, as to why CTO share price has stayed down - quarterly prodn down to 3,513 oz, costs up to $544/oz.
Hopefully the bad news is out of the way, but they're going to have to deliver on the promise of increasing prodn. That 3,513 needs to turn into at least 10,000 by year end, 25,000 by end 2009.
OTOH, the price of gold is already covering the increased costs.
Patience and strong nerves needed, as always in this game!!

 

[So_Cynical]

Still heaps of potential..and high average ore grade.

quote
The average mine grade of the ore trucked in the December
Quarter remains sound at 9.7 g/t Au.

 

[trtkjd1]

Actually spoke to Criss Townsey today on the phone , very aproachable guy who actually returned my phone call promptly . Said every thing shaping up well however did admit 2007 target of 40 000 ounces had been missed . reasons for this were explained in last quaterly report. Was very bullish on the gold actually being in the ground , i won,t go into detail for fear of being accused of ramping, but i won,t be selling for the next couple of years . Yes it might be a slow frustating track for a while , but should be worth the wait.

 

[TheIceMan]

Yesterday's announcement about the mill resuming operation seems to have given this is a bit of forward momentum. Might even see 40c today which would be very nice.

 

[So_Cynical]

Citigold ann out

http://www.citigold.com/viewasxrelease.asp?Releasenumber=249

Ya gota love the optimism of these guys....possible gold source :goodnight:the red text is mine.

 

[tthurlow2287]

Well CTO has been pretty quiet lately. Share price has dropped as low as 27.5cents during May. Looking at the chart now a nice double bottom is clear around the 28cent mark. I think its in for a 10-20% rise over the coming month.

I just wish they'd hurry up their production though. Seems to me as if they actually want to be bought out. If they have a proven 10million oz resource, why are they not focusing on production? Why are they drilling deeper holes to look for a 50million oz resource? And if they have $250million in assets, why are they still raising funds through "placement to international investors"? Shouldn't they have a small income from their current production?

But searching for a larger resource when they have a decent one now definately makes me think they are looking for someone to buy them out..

 

[explod]

But searching for a larger resource when they have a decent one now definately makes me think they are looking for someone to buy them out..

A Cousin of mine who lives in Townsville says "this is a very difficult mine". Like Bendigo, I understand it is deep and the rock very hard.

Having said that, they have it and if the gold price was to go and hold above $1000 you could be rewarded well in the longer term.

The chart looks very similar to most other gold stocks at the moment.

 

[tthurlow2287]

Yeah but I fail to see why they are still exploring when they should be focusing on ramping up production.

 

[EasternGrey1]

The way I read it, they have to open up access to the gold at multiple places in order to ramp up production. ie, it will take time. In the meantime, increasing reserves is a reasonable parallel activity. This seems like a very solid conservative management, who are more interested in the proper long term development of the resource than in quick results. They also seem pretty confident that there is a lot more gold down there somewhere, than they have found to date.

Patient shareholders needed!

Or am I misreading them?

 

[tthurlow2287]

After reading the report earlier this week it is looking promising for the future. They're now planning to ramp up production to 100,000 oz/yr by 2009 and 300,000 oz/yr by 2012. If they find this 'motherload' 50 million oz this stock should really go.

 

[quarky]

After reading the report earlier this week it is looking promising for the future. They're now planning to ramp up production to 100,000 oz/yr by 2009 and 300,000 oz/yr by 2012. If they find this 'motherload' 50 million oz this stock should really go.

"planning to" is the operative, as their share price dropped to $0.20
i jumped in about a year ago at $0.40
should have sold it at $0.55 or something like that.

now, i'm losing 1/2 of my money...big money.

 

[Sean K]

MC down to $100m and they reckon they are sitting on more than 10m oz au, and potential for 50m, or something crazy. MC to oz au $10. Cheapest in the market. Maybe the market doesn't believe them, or it's juts not going to be economic to get out of the ground.

Disastrous looking chart. Hitting 3 year support.

Is this a turnaround story, or a basket case?

 

[So_Cynical]

Is this a turnaround story, or a basket case?

Only time will tell, and its gona be along time coming.

CTO is debt free and in production so there not about to fall over, however
with production at ridiculously low levels the SP aint gona take off either.

The only short term hope for holders (me) is for spectacular success via the
deep hole or a senior management change or a takeover.

 

[interested]

I don't know what's going on with CTO. He has been "expecting" and "planning" and "scaling up" for years, but nothing much happens. There's a stack of gold up there at CT but it's not being mined

SP closed at 16.5 cents today

These lines are from tha June 08 quarterly report:

"The focus over the coming quarters is to grow gold production by scaling up of operations . . .
Stoping is still to be completed over this coming quarter . . .
it is expected that the percentage of ore coming from stopes will increase . . .
it is expected that this system will substantially lift productivity. . .
It is expected that the Western decline and associated strategy will become the template used . . .
the plan over the next 6 months is to scale up operations along strike of the reef.
An Atlas Copco M2C fully computerised twin boom jumbo is expected to be delivered . . .
It is expected that the funding will be in place in time to allow the ramp up of operations . . .

 

[Real1ty]

I got out of CTO at .40 as i began to realise that they promise the world and deliver very little.

They have the gold, and a very very fine grain also, but it's going to take them a long time to get where they want to be.

Sorry, where they said they were going to be.

 

[bvbfan]

6-7years still promising 10million ounces.

If others thought they had it it would have majors on the register or it would have had a bid or been taken over.