Guess you know LZA, a lonely vigile on hotcopper I see for...

Guess you know LZA, a lonely vigile on hotcopper I see for yourself, I join the merry band of one, if I don't post often, I will be reading...so don't feel alone.

The price increase is following the upward linear trend to production start (my guess late Feb.), towards 100kOz/year that has been forecast early 2011, but the last few days seem a tad unusual, not complaining :-), nice feelin' to see the SP move up.

A negative I see is the hedging for the financing, which is 290kOz over 5 years at $1075/oz. The flip side is, when they got financing it was very profitable at this level. Available cash and financing all solid.

I think it will be profitable, as you asked, cash costs predicted at around $440/oz, connected to grid power (cheap power), which was a large piece of the managements negotiation process, strong Ghanian labour source, low risk geochemistry, sulphide ore additional to current plan, basic processing circuit, life of mine over 10 years. Current resource model based on $900/oz gold price, with +2Moz.

Beyond this great base, the land holding is substantial and accessible by local infrastructure, only a small fraction investigated, numerous targets on the Salman trend and as we were happily informed, some good grades (some excellent) are being shown under and around current designed pit areas. Exploration budget is expanded, with a significant amount invested in the first half of this year. So blue sky. Hopefully any additional find to feed into constructed plant, or allow expansion. This is the reason why I own the stock, ADU growth on total Ozs. From what I have read it is in a good neighbourhood, and with the exploration budget going up I would hope to see some success (fingers crossed this is why the SP is moving up) :-)

So at least one other Hotcopper person is watching with interest.