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Gold One / Goliath Gold


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bought some GDO Shares, imho this is a "No-Brainer"




huge resource base and low production costs - LOW MARKET-CAP







Minute 4.40


Gold One produces first profit




Gold One Focused On Returning Cash, May Do So in 2011, CEO Says



Positive: current profit level, extensive reserves and resources and the high leverage are on the bullion price.

For a production of 120,000 oz in 2011 - profit margin of $ 300 / oz, the P /E would fall to 7.0.

The problem are the (still) high operating and investment costs and (still) high debt burden.

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2010 Annual Financial Results


 Profit before taxation of U$ 17.74 million (A$ 19.35 million)

 Cash generated from operations of U$ 32.85 million (A$ 35.83 million)

 Capital expenditure of U$ 31.46 million (A$ 34.31 million) (equates to US$ 474 per ounce)

2011 earnings guidance of US$ 59 million



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  • 3 weeks later...

Gold One International gold production jumps 22% and exceeds expectations





2. POG (price of gold) at record highs above 1400 p/oz and looking to break upwards soon. Should hit 2000 p/oz sometime late this year.

3. More panels opening up at Modder's East mine.

3. Ventersburg drill results out soon.

4. Goliath Gold to list in 2-3mths.

5. Talks of an acquisition.

6. Market starting to realise how stupidly undervalued this stock is.

7. Have lost count of the amount of BUY recommendations this stock has now got off brokers targeting anywhere from 50-80c in the short term.

8. Longer term GDO should be a monster with it's MASSIVE resource base.

9. Dividend payments could be as early as next year.

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very comfortable situation now :rolleyes:


enjoy the ride





Many yellow brick roads to follow



"For exposure to gold, mining and exploration shares are the best bet as they tend to respond to gold price movements by a factor of two-to-one," WiseOwl analyst Tim Morris says.


"My top pick at the moment is Gold One (GDO).


"The company's Modder East mine in South Africa has been up and running for over a year and its expansion is going very well. In addition upside lies in the company's enormous resource inventory, which stands at over 20 million ounces."




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very comfortable situation now :rolleyes:


enjoy the ride



Thanks for the tip Conrad. I'm in on this one (D.M.O.R. first of course) with a smallish holding. You are one of those posters on here who has been around for ages. People should celebrate you more!

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* March quarter production exceeds guidance, up 22% to 26,188 ounces

* Net cash flow from operations increased by 34% to US$ 11.19 million

* Cash and gold receivables balance increased by 62% to US$ 18.67 million

* Modder East cash cost steady at US$ 472/oz

* 12% improvement in Modder East recovered grade to 6.55 grams per tonne

* Total development for the March quarter increased by 16% to 1,369 metres with 81,920 square metres of reserves now available for mining

* Plant recoveries maintained at 96.5%

* Continued drilling at Ventersburg confirms shallow extension of modelled higher grade payshoot

* Shareholders of White Water Resources overwhelmingly approve the creation of Goliath Gold

* total Cost 659/oz, cash cost 472/oz


June Quarter Outlook

* On track for June quarter production guidance of 28,000 ounces

* Modder East and Modder North drilling will continue

* The results of the Ventersburg pre-feasibility study will be released once the potential impact of the recent shallow surface drilling results has been reviewed

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Email response from their IR manager- Ilja Graulich




We have not made full announcements on the debt, this will come in time


Below responses to some of the major questions, we have had, including your questions


Also, we are looking at some 500 retrenchments @ RU as we speak to bring costs down, and optimisation of treatment of ore.





Are the assets BEE compliant post GDO’s acquisition and what is GDO’s effective level of ownership?


No the assets as they are currently contemplated in the sale are not BEE compliant. To achieve approval of the transaction from the Department of mineral Resources (DMR) BEE compliancy will need to be put into place prior to the transaction being finalized. This will be done using a similar model to that applied at the other Gold One assets, e.g. Modder East and Goliath. Effectively this is done at an asset level where 26% of the asset is sold to the BEE partners funded by vendor financing and repaid over time at market related prices. As such Gold One will effectively hold 100% of the assets for now.




What levels of CAPEX do you envisage for the Cooke Gold Plant reconfiguration to treat underground ores?


Less than R20 million ($3 million). The Cooke plant has over the past few years been significantly upgraded By Rand Uranium to treat the surface sand material. It has also recently been “re-commissioned” on underground ore in limited volumes that have been batch treated during times when the Doornkop plant has been temporarily unavailable. The proposed Capex expenditure largely relates to upgrading the existing tanks within the plant and minor work on the mills. Once uranium production starts, an additional R25 million capital expenditure is envisaged to split the gold only and gold and uranium bearing ore into separate streams.




What improvement on current operating costs (ZAR1,000/t) are you targeting at Cooke underground?


Over the next 12 to 24 months we are looking at reducing the underground operating costs by at least 20%. Given the depth and volumes planned, opex costs for this operation should be approximately R750 – R800/ton. Additional cost savings will also be made on the processing side once all ore is treated at the Cooke Plant as opposed to the toll treating at Doornkop. This change over is anticipated to take between 6 and 12 months and processing costs could be reduced by as much as 30%.




What levels of CAPEX are being scoped for the new uranium processing facility?


A total CAPEX of R2.8 bn (~$410 million) of which R0.3 bn is directly related to the tailings depositional facility and the remainder to the U Plant. Gold One will review in detail the existing feasibility study to determine whether any cost savings in this regard are prudent (initial indications are that some savings are likely).




What sort of operating costs are targeted in the uranium study?


It is important to recognise that Gold One does not view the uranium project as a “standalone” project but rather as a co-product that facilitates a reduction in gold operating costs. This is probably the single biggest difference between Gold One’s view and that of the current owners which makes this acquisition so exciting in the medium term. However to try and split out uranium costs alone would suggest that operating costs for the surface resource only are about 45$/lb (in addition gold would be recovered from this dump which when taken as a credit to U opex, would result in a net OPEX cost of 40$/lb). If underground ore is included (i.e. mining costs carried by Gold production and only processing costs carried by Uranium) then total operating costs for U production is about 40$/lb.


When considering the co-product model, our modelling suggests that at steady state, gold cash costs (including uranium credits) will be below US$400/oz.




When is GDO hoping to make an investment decision on the uranium project?


In 2012. This will follow a detailed review of the existing feasibility study as well as an optimised co-product mining plan being developed.

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9:25 am Cash Offer to Gold One Shareholders of A$0.55 per share

9:25 am Notice of Presentation to be delivered on 16 May 2011

9:25 am Presentation Building off a Solid Foundation

9:24 am Cash Offer to Gold One Shareholders of A$0.55 Per Share




New capital of at least A$150 million (ZAR1.1 billion*) will be injected into Gold One by the Consortium, which is aiming to secure a 60% to 75% shareholding in the company.


Gold One’s current listings on the ASX and the JSE will be maintained, with the possibility of a future listing on the Hong Kong Securities Exchange.



The Consortium may subscribe for up to an additional 188.7 million shares in Gold One at A$0.53, should the initial subscription by the Consortium and acceptances of the A$0.55 per Gold One share cash offer not result in the Consortium achieving an aggregate interest of 60% in Gold One’s ordinary share capital in issue

on a fully diluted basis.

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Sub Nigel shaft closed as water levels rise in East Rand basin



China National Gold träumt von Goldrausch in Afrika



Goliath Gold shrinks from Pamodzi purchase


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