Hi nord, I know you have less of a forward bias than me when it...

Hi nord,

I know you have less of a forward bias than me when it comes to stock analysis, as you seem more guided by quarter on quarter results but if you look at the feasibilty ASIC numbers on a more forward basis this is a screaming buy if the AUD gold price has made a "structural" shift higher as I think is your opinion (and that's even if those numbers prove to be optimistic). What I look for in an UG mine or any mine is simple geometry and enough draw points and surface openings so you don't end up with mining bottle necks. You would know better than most how a good grade ore body can run into trouble without the capicity to easily hoist ore to surface, take the shaft bottle neck with MML for example. It ruined the SP of that company. DCN looks on the face of it to be getting on top of the UG mining, lots of faces opened up, plenty of decline access, so I'm pretty confident in the long game here.

As far as the $A gold price goes I can see the USD softening in the medium to long term based on rising US debt burdens which might cause a rise in the USD gold price as other asset classes soften and a rise in the AUD despite the shaky Australian housing market outlook. We are a commodity driven economy so we should be spared the worst of a housing sector driven down turn and the reserve bank still has room to move. The wealth of the nation just gets a little redistributed if housing is hit but the overall wealth can improve if the terms of trade improve, with a falling USD as commodities get priced higher in USD terms.

We might see that the AUD gold price gets balanced by the a rising USD gold price and a rising AUD as we move forward. Based on recent history, the last few decades, A$ gold has been a good investment relative to cash and Australin property in more recent times. I can only see that continuing. $A gold seems to be an under the radar investment at the moment and some A$ gold companies even more so. Esh