SaberXThis is a very rough market with a lot of fear at the...

SaberX

This is a very rough market with a lot of fear at the small end.

All I can say is that financially ADU looks like it can survive a rough period.

All other goldies have been tanking badly, but ADU somewhat more than what I had expected. Some of this is due to end of year tax loss selling.

I am expecting a more positive market for goldies in the second half of 2011. One might consider having some cash on hand and buying more goldies as a trade to lower ones entry cost. This is what I plan to do. Current ADU price looks inviting, but I feel that the overall market has not yet reached capitulation point. I am also looking at other goldies.

On the other hand I could be totally wrong about everything. The market could go a heck of a lot lower if we get GFC2. In which case perhaps ADU may hit 30 cents for all I know! My average enty price is around 44 cents, and the lower price means that I have lost most of my profits.

Drilling in Liberia is to start later this year. If they find something then we will benefit later on. Fingers crossed. I am also hoping to hear about their plans for the sulphide-complexed gold they are exploring - if they can mine this commercially then there is another major reason for a re-rating. The June quarterly will give an indication of their cost of mining - lets see if they do have a cash cost of around $550/ounce. I am expecting them to be cashflow positive into the future - will find out if they are in July.

My portfolio of goldies has lost around 30-35% of its value since mid April, and I sold down some of my shares (but not ADU) earlier on to have some spare cash for this low period. I have found that being fully invested all year round has become too dangerous for my financial position.

Good luck.

loki (Oh the joys of being a golden bug)