Thoughts on Central Rand Gold?

[Jamus]

I am a complete amateur to Gold stocks, but this seems a good bet.

 

The prospects seem good, cash in the bank, mining next year and the price is cheap compared to where its been.

 

 

http://www.lse.co.uk/shareprice.asp?sharep..._gold_ld_ord_1p

 

Sorry for the basic analysis, but its late and I don't know exactly what to look for.

[jerpy]

I am a complete amateur to Gold stocks, but this seems a good bet.

 

The prospects seem good, cash in the bank, mining next year and the price is cheap compared to where its been.

 

 

http://www.lse.co.uk/shareprice.asp?sharep..._gold_ld_ord_1p

 

Sorry for the basic analysis, but its late and I don't know exactly what to look for.

 

If you want some further basic detail they were plugged in Shares mag last week, hence possible slight spike as volumes didn't seem hugely traded! Can't remember what was said as read it standing in a motorway services WH Smiths, just thought would check them out myself sometime, so got them on a watchlist.

 

Do recall they had lots of permits and only been on LSE for about 12 months and suppose main benefit is they will not suffer the whims of AIM! But still had the graph of a bumpy slide

[Jamus]

Found this on the interactive investor board, which has been taken form the adfvn site:

 

The market moves in mysterious ways if Central Rand Gold's share price performance is anything to go by. Each time negative events unfold in the global financial crisis,investors are reminded that gold is a safe haven. Randgold Resources has regularly appeared at the top of the stock market risers on days of economic strife. Unfortunately this spotlight has yet to find its way to Central Rand Gold, the South African company trying to mine new sections of eight old deposits near Johannesburg. Its share price had fallen nearly 82 per cent since November 2007's IPO but the start of a fortnight's slog around the boardrooms of UK institutions may help to reverse this negative trend.

Central RandGold has had a string of bad luck, according to chief executive Greg James. 'Soon after we listed,investors switched focus from exploration to production companies, leaving us out of fashion. Institutions started to unwind their positions and while an investor and analyst site visit during the summer helped to stabilise the falling share price, our biggest piece of positive news since listing got lost in one of the worst weeks for global stock markets in many years.'

 

The award of New Order Mining Rights – essentially its mining licence – in September for the first section of its eight-piece project should have been cause for celebration. Instead, the stock did nothing, overshadowed by news on the day of Lloyds TSB moving to save fellow UK banking group HBOS from collapse and the US government trying to bail out insurance group AIG in a £47.2 billion rescue.

 

James and financial director Johan Du Toit have come to the UK to address misconceptions about Central Rand Gold. At the top of their list is the message that the business does not need to raise money any time soon. The company has around US$133 million cash, enough to help it start commercial production and reach an annualised output rate of 250,000 ounces of gold by 2010. Trial production began on 1st October 2008.

 

Ambitions to increase production to 1 million ounces a year by 2012 would require US$150 million funding, but James insists this development plan won't need to be finalised for another year or two. 'We're very flexible. If the market stays where it is today, we have the option to delay the one million ounce ramp up. We could actually fund the expansion ourselves if we push back the plans two or three years.' James continues: 'If the capital markets open up again by 2010, however, we will press ahead with plans to raise US$150 million.'

 

The company's assets have a 25-year mine life, even though they were declared forty years ago to be exhausted. Re-evaluation of the deposits has unearthed great amounts of gold yet to be exploited. 'We're going to focus on un-mined reefs, not scratch around on the sections that have already been worked,' insists James. The eventual plan is to clear the deposits free of gold and use the land to develop industrial property. The real estate owner is not in rush for the mining to be completed, however, as it is getting a tidy US$8 per ounce royalty fee.

 

Each of the eight deposits are not economical to mine on a standalone basis, but together they form an attractive mining project across a 280 square kilometre patch of tenements. Central Rand Gold will start off with surface mining before going underground. To increase production it will simply install extra machines to burrow away beneath the surface, Du Toit says. Instead of the traditional South African method of sinking shafts to reach the high-grade gold, it will develop a decline making it easier and cheaper to work underground. 'We're a junior miner today,' says James. 'In two years' times, we will be a big miner.' And with that promise, the chief executive prepared to meet another analyst with determination in his stride and hope of being given a second chance to win over the market.

 

Posted 28th Oct.

[Jamus]

http://www.ft.com/cms/s/0/18baaa2a-84fe-11...?nclick_check=1

 

 

Central Rand wins ‘new order’ rights

By William MacNamara

 

Published: September 17 2008 22:38 | Last updated: September 17 2008 22:38

 

Central Rand Gold, the London-listed gold explorer, is poised to move on to the centre stage of South African gold mining after it won government approval on Wednesday to revive a swathe of gold mines in the Johannesburg area.

 

The shares initially rose following the South African Department of Minerals and Energy’s grant of “new order” mining rights to the company, which will now be able to exploit three concessions in the Central Rand gold fields.

 

EDITOR’S CHOICE

Bling fails to dazzle in volatile gold market - Oct-23Gold’s sparkle begins to fade - Oct-27No silver lining for tumbling gold shares - Oct-08Hochschild shifts focus from projects to takeovers - Oct-22Highland Gold surges after results ease Russia fears - Sep-25Randgold set for expansion in Ivory Coast - Feb-04These historically rich fields have lain exhausted since the 1970s but Central Rand Gold believes that the high gold price and new technology will allow it to profitably extract more gold.

 

The company forecasts 4.2m ounces of gold from the three concessions over the next seven years. It believes its total of eight contiguous concessions in the Central Rand could eventually yield as much as 35m ounces. In comparison, AngloGold Ashanti, the biggest gold miner in Africa, produced 2.3m ounces of gold from its South African mines in 2007.

 

Like much larger South Africa-focused miners, Central Rand Gold won its “new order” mining licence in part by meeting criteria based on the principles of black economic empowerment.

 

The company is 26 per cent owned by Puno, a BEE company, and committed to employing 30,000 people in its Central Rand mines.

 

Greg James, chief executive, said the company’s goal was to produce gold at an annual rate of 100,000 ounces by the end of 2009.

 

Charles Kernot, an analyst at Evolution Securities, set a target price of 210p following the grant of mining rights.

 

Its shares were flat at 50p.

Copyright The Financial Times Limited 2008

 

[Jamus]

http://www.miningweekly.com/article.php?a_id=134229

 

 

The remining of Johannesburg – 122 years after George Harrison’s initial 1886 gold discovery – is now poised to begin sooner than expected and involve a bigger resource than originally announced, Mining Weekly understands.

The London- and Johannesburg-listed mining company, Central Rand Gold (CRG), expects to turn old Golden City workings to positive account sooner than previously expected, Mining Weekly learns.

 

It is understood that CRG wants trial mining to start the moment it is awarded its mining licence, which is expected within the next few months.

 

By the end of 2009, CRG plans to be pro- ducing at a rate of 100 000 oz/y of gold.

 

It wants to ratchet up to 250 000 oz/y by 2010 and then go on to a million ounces a year by 2012.

 

CRG CEO Greg James, a former CFO of the coal division of Glencore International who worked under legendary Glencore CEO Ivan Glasenberg, says the old operations have a remaining life of “at least 30 to 35 years”.

 

Although the Central Rand has already produced 247-million ounces of gold since mining began in the area more than a century ago, considerable resources remain as unmined remnants and even virgin reef.

 

There is a total Joint Ore Reserves Committee resource of 35,5-million ounces of gold still in the ground, 22,3-million of which are in the indicated category and 13,2-million in the inferred category.

 

CRG’s properties are the old Consolidated Main Reef (CMR), Crown Mines, City Deep, Village Main and Robinson Deep.

 

When CRG made its initial public offering (IPO), it may have presented something of a worst-case reef scenario.

 

The IPO’s statement was based primarily on the Main Reef and the Main Reef Leader sequences of those properties, but Mining Weekly is told that there is “much more gold” than stated at the time of the IPO, including the virgin 4-g/t to 5-g/t Bird and Kimberley reefs.

 

Mining Weekly learns that there may be other parallel reefs that can be mined in addition to those already announced, the consequence of fussy pioneer miners pursuing only high grades of 8 g/t plus.

 

Huge amounts of the Bird reef and the Kimberley reef are said to be unmined, allowing a huge resource to be potentially added to the CRG portfolio.

 

Uranium and silver are also unmined and will be extracted for sale as concentrate, allowing mined-out areas to be completely rehabilitated this time around.

 

CRG, which intends to mine at depths of 170 m and later 500 m, will use mechanised mining methods common in other parts of the world, but reconfigured to suit its requirements. It will include extra-low-profile machinery.

 

“Our proposed mining technique and our strategy helped to make Glencore the biggest coal producer in the world,” says James.

 

At least 200 workers will be needed for each mining area and local skills will be used.

 

CRG will mine within a renewed underground network and intends stabilising historical workings through backfilling.

 

Use will be made of the large subsurface water supply available in the old mine workings, in addition to sparing use of water supplied by Rand Water, which will be recycled.

 

Low-noise subsonic blasting techniques will be used for rock breaking so as not to disturb near-mine communities.

 

CURRENT ACTIVITIES

CRG has submitted its environmental management programme (EMP) to the Department of Minerals and Energy (DME). In addition, the company has updated the social and labour plan, following an extensive public participation programme.

 

CRG has received assay results for 75% of assays submitted to date compared with 50% when the IPO prospectus was issued late last year.

 

In the past 17 months, CRG has diamond-drilled and reverse circulation drilled 45 600 m.

 

To date, access has been gained to eight existing shafts, made safe and reopened for the underground sampling programme.

 

This has started on the CMR East shaft, which has been reopened down to 296 m below the surface and on the CMR shaft nine, which has been reopened down to 127 m below the surface.

 

“CRG is continuing its drilling programme, coupled with underground sampling, across all nine slots with the aim of further enhancing the current gold resource base,” says James.

 

“The complete area that will be mined consists of 280 km2 and it is all contiguous in nature, which gives us a significant advantage.

 

“All these areas were previously individual mines, with unmined areas in between. These mines had to go deep owing to the boundaries, but CRG has all the rights, stretching across all the boundaries. No one saw the possibilities, because they were all thinking in terms of the way it was mined before,” says CRG COO Mike Sullivan.

 

Formerly, because of the limited space, ore was brought up to the surface and dumped in ugly, unhealthy tailings dam areas. Most of these areas on the CRG ground have now been cleared and are available to CRG for mining.

 

CRG’s unconventional mining technique is decline trackless mining, which makes use of earthmoving equipment.

 

Sullivan adds that the mining technique is safer and more worker friendly. Mined-out areas will be backfilled.

 

Small satellite plants that can also be located underground will be placed near production for ore processing, which is only about 10% of the original volume of mined rock,” Sullivan adds.

 

POTENTIAL SPOTTED

Thoughts of mining began when the University of the Witwatersrand’s two geologist honorary professor brothers, Morris and Richard Viljoen, established, through student visits, that the old derelict mines had potential.

 

The mines were owned by Rand Mines, which split its mining company from its property developing company in the 1980s.

 

Rand Mines managers bought out the property company in the late 1990s to form iProp.

 

However, with the introduction of the Mineral and Petroleum Resources Development Act (MPRDA) and because the resource was economic, CRG, through its association with iProp, had an opportunity to convert unused old-order rights into new-order prospecting rights using the MPRDA’s ‘Use it or Lose it’ policy.

 

Australian geologist Harry Mason raised £2-million to explore the old mine workings under the name of Rand Quest Syndicate, which changed its name to CRG in 2007.

 

After a series of further private placements totalling £23-million, CRG listed on the JSE and the LSE in November 2007, raising the further estimated £75-million the company needed to complete additional exploration of the unmined areas and produce at an annual rate of 250 000 oz/y.

 

“The big thing was that we had restructured a high-profile board and team, and that is why there was confidence from investors to place a fair amount of money in the company,” he adds.

 

But, from a South African investor’s point of view, CRG has struggled to get the traditional mining believers to have faith in the company’s proposed mining technique and the possibility of gold in these mines.

 

When the company listed on the JSE it did not do as well as it had done on the LSE, delivering “very interesting” results.

 

The company’s share price opened at £1,44 a share on the initial entry onto the LSE, which is now trading at £1,07.

 

COMMUNITY IMPACT

CRG did a community roadshow to communicate that 4 000 new direct jobs and 32 000 indirect jobs are being created, James reporting that over 20 000 locals provided input, by attending the community meetings.

He says that members of the community will be employed for exploration and mining, and transport will be provided to ensure that they continue to live in their communities.

 

“At some meetings, we had over 1 000 people, and every person gave an opinion of what they would like to see in terms of job opportunities, and whether they would like to be contacted,” James enthuses.

 

“In some instances, we are planning to double up on jobs by hiring a skilled worker to train an unskilled worker on the job. We will bring skilled, unskilled and semiskilled people on to the job, and once they reach a certain level, we will send them to training schools that we plan to establish ourselves, once the company has grown to a big enough size.

 

“At the same time, we will address the shortage of skills within the immediate communities by developing and financing a technical college.

 

“We used to have technical colleges, and we want to go back to that method as it really worked and gave people the opportunity to learn the trade.

 

“We would like to see our employees go through the college and, in the future, see their children train through the college and thereby create a continuous upskilling structure,” James says.

 

CRG plans to give university graduates hands-on experience by sending them on 20-week training courses within the company, and intends building a strong female workforce.

 

“Its geology team has a strong women complement, but the company has been unsuccessful in attracting female engineers,” James laments.

 

MINING GREEN

CRG says in its EMP to the DME that it will rehabilitate as it mines, with no dumping, and has assured the Department of Water Affairs and Forestry that water will not be polluted.

 

CRG environmental and tenement manager Jenny Johnson says, “We are rehabilitating as we go along; we will not be leaving mine waste products on surface as all mine waste will be cleaned and used to backfill old workings or on-sold for recovery of by-products.

 

“We will also rehabilitate and free up land for future development, which is key for some of our local economic development projects and Johannesburg as a whole.

 

“We will not use any toxic chemical agents and all harmful waste will be removed from the mine sites. The tailings will be desulphurised before being used for backfill, which will prevent the creation of acid mine water.

 

“The satellite plants will not use any toxic chemicals at all. What usually causes a lot of acid mine drainage (AMD) is the pyrite and sulphide left in the original rock, which rusts and turns into sulphuric acid, but we are removing all of it. About 3% to 5% of sulphide can cause AMD, but when we clean it, only 0,2% sulphide is left.

 

“We are also not conducting cyanide leaching. We use a frothing agent, which produces bubbles, which the gold sticks to. It then goes through a gravity process and a frothing plant to remove the sulphide. It is nontoxic and completely organic,” says Sullivan.

 

The extracted concentrate will be sent to a central extraction plant, which will be enclosed and located in a remote area. Cyanide will be used to leach out the gold from the 10% extracted rock.

James has established a backbone for the company by ensuring that all issues are dealt with immediately, and by ensuring that a strong focus is placed on key issues that arise.

 

“Nothing is holding us back. This project is fairly big, and we have remained focused on what we have, and we have key focus areas that are important to address through every step we take. Up until now, we have met every challenge thrown our way.

 

“The community issues and the roadshow were a big project, and throughout the process we have encountered obstacles that we have dealt with head-on.

 

“We formed a mining rights committee that ensures that all document-ation that needs to be submitted, or issues that need to be dealt with, are taken care of. We have put plans in place to counter all obstacles that come up, as we do not want to wait for things to go wrong. We are being proactive on an ongoing basis.

 

“The mines are as much an asset for the citizens as [they are] for the shareholders, and if all stakeholders aren’t properly addressed, then the shareholders will be supporting a lost cause and, therefore, we are ensuring that all stakeholders are kept up to speed on all issues,” he says.

 

DISPROVING CRITICS

“People have been cynical and said we didn’t know what we were doing, but we do know what we are doing, and our mining technique is not something new. People have just been missing it as a viable option as they are too focused on what they are used to. European investors are a lot more open to new ideas, but in South Africa, the mining sector is very set in its ways,” says James.

 

He is confident that the South African investors will soon realise the company’s upside.

 

“Slowly but surely, the scepticism is disappearing,” he says, noting a change of attitude at this year’s Mining Indaba, in Cape Town, over last year’s.

 

“Last year, people were negative about our prospects, but after this year’s Indaba, they started taking us far more seriously,” James concludes.

 

 

[jerpy]

Hi Jamus,

 

Found this one from the same source a bit more interesting due to cost analysis.

 

http://www.miningweekly.com/article.php?a_id=144941

 

Plant and backfill positioning would result in lower haulage costs and there would be no need for slimes dam management.

 

Stoping would represent 20% of the cash costs at $64/oz; engineering 13%, at $41,60/oz; water and electricity utilities 4%, at $12,80/oz; labour 41%, at $131,20/oz; metal- lurgical processes 17%, at $54,40/oz; and the remaining 5%, at $16/oz, taking the total cash cost to $320/oz.

 

Upside potential included uranium and sulphur opportunities.

 

Gold production was expected to start at up to 1 500 oz/m from November 2008, rising to 100 000 oz/y in the fourth quarter of 2010.

 

The new 18 000-t/m concentrator would be commissioned in April 2009 and the 10 000-t/m carbon-in-leach plant in the first quarter of 2009.

 

 

 

[Jamus]

Hi Jamus,

 

Found this one from the same source a bit more interesting due to cost analysis.

 

http://www.miningweekly.com/article.php?a_id=144941

 

Plant and backfill positioning would result in lower haulage costs and there would be no need for slimes dam management.

 

Stoping would represent 20% of the cash costs at $64/oz; engineering 13%, at $41,60/oz; water and electricity utilities 4%, at $12,80/oz; labour 41%, at $131,20/oz; metal- lurgical processes 17%, at $54,40/oz; and the remaining 5%, at $16/oz, taking the total cash cost to $320/oz.

 

Upside potential included uranium and sulphur opportunities.

 

Gold production was expected to start at up to 1 500 oz/m from November 2008, rising to 100 000 oz/y in the fourth quarter of 2010.

 

The new 18 000-t/m concentrator would be commissioned in April 2009 and the 10 000-t/m carbon-in-leach plant in the first quarter of 2009.

,

 

 

Cheers Riggerz, I had seen that myself on one of the bulletin boards. I've jumped in and bought some now, there was an RNS last week saying they have started there gold production and on track to meet the schedule.

[Jamus]

http://www.telegraph.co.uk/finance/markets...s-for-2009.html

Ambrian reveals its top share picks for 2009

 

It's that time of the year again when brokers give their share tips for the upcoming year

 

Corporate broker Ambrian Partners is no exception, having published its gold company recommendations for 2009.

 

Its top picks are Centamin Egypt, Highland Gold, European Goldfields and Central Rand Goldfields.

 

Justifying its picks, Ambrian says all of the companies fulfil two basic criteria: growth profile and cash.

 

In the current funding environment, companies with cash not only offer lower risk, they will also likely be out of the blocks faster when the global economy eventually recovers.

 

In contrast, companies with either debt or convertibles (which are looking toxic at current equity prices) should be avoided, it says.

 

While each of the four companies tipped come with potential technical, political or licensing issues, as a package they are diversified enough to offer "excellent value".

 

"Highland is our favourite producer at these prices because of its cash and new project pipeline, while Centamin and Central Rand Goldfields are our favourite pre-producers because initial production is funded and growth should follow thereafter.

 

"While existing operations are marginal, the growth profile for debt-free European Goldfields also represents good value".

 

Worth noting is that just because a company appears to be cheap, doesn't necessarily mean it is a bargain.

 

Ambrian argues that those companies with debt, or looking for short-term funding, especially where they are struggling to meet production schedules, are increasingly vulnerable in any longer-term equity market weakness. Investors should therefore switch out of high-cost producers and ascribe low value to high-cost projects.

 

Although gold is developing support at current levels there is still a downside risk in the coming year.

 

Meanwhile, mining and technical skills can be vital in controlling operating costs, while production growth can control cost escalation.

 

Most of the companies reviewed in Ambrian's note substantially missed guidance targets from the prior year. Most commonly missed were production, construction, licence and cost targets – demonstrating the importance of qualified

and technically strong management.

 

Highland Gold and European Goldfields are recommended (despite missing targets along with everyone else) because of their ability to efficiently use staff expertise from existing producing mines.

 

While Ambrian believes $1,000 (£681)/oz gold will continue to be a difficult hurdle to overcome, because of the likely weakness in jewellery demand, solid buying of stock market listed Exchange Traded Funds (ETFs) and the possibility that hedge fund closures/redemptions will become less of an issue, should hold gold at over $750 per ounce, making it a more attractive commodity than base metals, ahead of any rebound in the global economy. US dollar strength is key; if the US recovers before the EU and East, expect gold price weakness.

 

In its view, gold mining shares could still face

short-term downside risk, irrespective of the "safe haven" concept referred to regularly.

 

However, for those with

a long-term investment horizon, the market has been indiscriminate and there appear to be lots of bargains, it says.

 

Despite the share price pasting taken by gold mining companies in recent months, the outlook in general for commodities prices appears to be improving – at least as far as ETF Securities is concerned.

 

In its latest weekly trading report the company says it witnessed net inflows of $185m into its Exchange Traded Commodities (ETCs) – a five-month high.

 

ETCs are investment vehicles tracking the performance of an underlying commodity index. Similar to Exchange Traded Funds (ETFs), they can be traded and settled like normal shares. Hence, they have market maker support with guaranteed liquidity.

 

Nichols Brooks, head of research and investment strategy at ETF Securities, says the strong flow ($140m) into the company's ETFs physical gold vehicle appears to be part of more movement into gold, which has also seen sales of coins, gold bars and jewellery soar.

 

Physical demand for gold has surged of late, with investors becoming increasingly concerned about the outlook for major currencies as central banks have been forced to aggressively ease interest rate. Indeed, Governments have substantially increased fiscal spending and debt

in an attempt to offset collapsing private sector growth.

 

Nik Bienkowski, chief operating officer at ETF Securities, says: "A fall in demand has driven commodity prices down recently. However, the tight supply situation in a number of commodities has not changed significantly."

 

 

[littledavesab]

co-incidence I mentioned Central Rand Gold under the Devastated miners thread - see

 

http://www.greenenergyinvestors.com/index....ic=5081&hl=

 

although I think Jamus mentioned it first

[Jamus]

Anyone else looking at this? Its had a nice 30%+ rise since I first mentioned it.

 

 

As I said originally, i'm new to gold stocks, but this even to my amateur eyes seems to have MASSIVE potential, cash in the bank and 36 million ounces in the ground.

 

I don't think the market has really woken up to this companies potential, it may be classed as a junior now, but in a few years if all goes to plan it could be producing a million ounces a year!

 

they've just started to produce their first few ounces.

[jerpy]

Hi Jamus,

 

yes i bought a few after my last post and reading more detail about their first gold pour, if they rise a bit higher may take some profit and then just enjoy the ride, since the journey looks like it's going now.

 

riggers

[Jamus]

nice 11% rise today, they broke the resistance level of 36p on friday, and look at them go....

 

On quite a nice volume as well, as well as buy to sell ratio. Think they jumped 60% in south africa today where they are also listed. And on a day Gold and mining shares were generally down!

 

I have bought a few of these, and want to lock in some profits myself, but then again, I still feel they have a lot further to go over the next few years!

[Jamus]

Hi Jamus,

 

yes i bought a few after my last post and reading more detail about their first gold pour, if they rise a bit higher may take some profit and then just enjoy the ride, since the journey looks like it's going now.

 

riggers

 

 

Rigger, where do see these going long term? there is a lot of bullish chat about these on certain forums, and it does seem to make a lot of sense.

 

The upside potential almost sounds to good to be true, which is concerning....but then again, these still haven't recovered to where they were a year ago, and the fundamentals have improved!

[Jamus]

Hi Jamus,

 

yes i bought a few after my last post and reading more detail about their first gold pour, if they rise a bit higher may take some profit and then just enjoy the ride, since the journey looks like it's going now.

 

riggers

 

 

Rigger, where do see these going long term? there is a lot of bullish chat about these on certain forums, and it does seem to make a lot of sense.

 

The upside potential almost sounds to good to be true, which is concerning....but then again, these still haven't recovered to where they were a year ago, and the fundamentals have improved!

[jerpy]

Rigger, where do see these going long term? there is a lot of bullish chat about these on certain forums, and it does seem to make a lot of sense.

 

The upside potential almost sounds to good to be true, which is concerning....but then again, these still haven't recovered to where they were a year ago, and the fundamentals have improved!

 

STOCKS NEWS Reuters Results diary

 

10:53GMT 29Jan2009-Central Rand Gold (CRND.L) tumbles 21 percent, with analysts expecting the company to be hit by "material" forex losses and reducing the company's production targets for 2009.

 

Ambrian analyst Brock Salier says: "With U.S. dollar falling from 1.99 to 1.46 ... the $132.6 million held in sterling could have suffered forex losses of as much as $35 million."

 

However, the broker forecasts this is more likely to be around $25 million, but says "this is still very material".

 

Commenting on Central Rand's production rate, Salier says, the company's targets have fallen from "fully funded to 250,000oz by 4Q10" to "funded with operating cashflow to 100,000oz pa by 4Q09," adding, "we believe the shares will fall on this news".

 

http://uk.reuters.com/article/hotStocksNew...T31026620090129

 

Jamus, i took some profit when it got past 40, should have took them all, as got out the others at 37 since i was slightly concerned when they dropped sharply and thought best to realise profits even if reduced a bit today; i'll buy back in at some point, well thats the intention, but just sat on the fence for now, though to see where they settle.

 

Riggers

[littledavesab]

Do recall they had lots of permits and only been on LSE for about 12 months and suppose main benefit is they will not suffer the whims of AIM! But still had the graph of a bumpy slide

 

Going forward I think that having a main listing rather than AIM is a big plus.

 

There is expectation that AIM will have to shrink from over 1500 stocks down to under 1000 given its poor liiquidity. AIM stocks are dropping off for varying reasons - overdue accounts, cost of listing, etc. This can happen overnight and leave you stuck with shares in a suspended company (also possible but less likely on main market).

 

Operational update released today

 

http://www.centralrandgold.com/documents/p...ate%20Final.pdf

 

I like what they have to say on being able to produce from existing cash position. But they are using an estimated POG $850 - which to me seems on the high side for contingency planning

[jerpy]

But they are using an estimated POG $850 - which to me seems on the high side for contingency planning

 

Wonder if thats another reason they are falling back again or maybe just people heading the likes of Dr B's call to take some profits?

 

[notanewmember]

Sleeping giant or dead? I have joined the party at an average of 2.5p. Lets see where this goes.

[littledavesab]

Thanks for the bump. Quite a fall eh!

 

24.75p back 28/11/2008 (source = google) to 2.5p for NotANewMember.

and a low of 1.70p 9sept 2010

 

I might be tempted to have a look!

 

http://business.iafrica.com/news/664915.html

22/9/2010

 

Central Rand Gold last month reported that its first half net loss increased 19 percent to US$17.3-million from US$14.6-million previously, mainly due to lower interest received and lower foreign exchange gains on the back of lower cash balances.

 

The company's operating loss, however, decreased by 22 percent to US$17.4-million in the six months to end June 2010, from US$22.4-million for the six months to end June 2009.

 

This was mainly attributed to revenue from the sale of 3085 ounces of gold processed from initial underground development ore, trial stoping and shallow surface materials.

 

During the first half of 2010, the company produced a total of 3368 ounces of gold.

 

Ps 850 for POG no longer seems high!

[notanewmember]

You have to believe in the bull market! Well that's what I tell myself. They say even the turkeys will fly so the way I pick them is via a - dart board style method.

 

Quite a fall indeed - I await a 4 weekly new high (close above 7p-ish), and then we'll see some action. Meantime, hold and wait.

[jerpy]

Interest building in CRND last few weeks and timely bump.

 

Can you tell me about their plans to solve the potential flooding problems? That's my concern jumping in too heavy. Not trying to rubbish it, had seen a few mention this issue, without doing too much research.

 

Any view?

[jerpy]

I don't know exactly what to look for.

 

Rebump and suggest a plug now.

 

Have been watching this game of so called brinkmanship, looks a gamble to me on solving water issues. Any other insight, as personally don't feel brave enough to get back in.

 

[littledavesab]

This one has not joined in the small cap jolly of since Aug 2010 has it! 1.29p now on google.

 

No news reported for this one for some time now...

[jerpy]

This one has not joined in the small cap jolly of since Aug 2010 has it! 1.29p now on google.

 

No news reported for this one for some time now...

 

Think you missed this, which suggests this nag is currenly running the second circuit at Aintree and the ground looks a bit heavy

 

 

There is much to be done to close the gap between the general commitments of the Government and the Company's specific needs. Whilst there is no doubt that this will all be resolved, everything hangs on the timing, which is disappointingly uncertain. In the face of these uncertainties concerning depth, the obvious alternative is to maximise development and mining in the upper levels.

 

Strategic Review

 

The Company's very substantial gold resource base remains intact and in part has recently been reconfirmed. Work to demonstrate economically viable extraction has progressively eliminated certain approaches and has highlighted the keys to success - which future planning intends to deliver. A combination of this focus, plus much clearer direction from Government on dealing with AMD pumping and treatment, together with the consequent ability to physically access the relatively "double-void" free deeper levels, should allow the Company to show its real value.

 

Given resolution and progress on the above-listed uncertainties, the Company expects to be able to re-assess its prospects by end of October 2011. Part of this re-assessment will be the questions of further funding and possible other corporate actions.

 

In the interim, given the continued difficulties and uncertainties faced by the Company, the Board continues to look at all strategic options for the Company one of which could lead to an offer for the entire issued share capital of the Company. However, this option is at an early stage and there can be no certainty that an offer for the Company will be forthcoming.

 

 

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10825463