CGA Mining Limited (TSX Code : CGA, ASX Code : CGX) is pleased to report a record monthly production of 20,007 ounces of gold for May 2012 (previous record, 18,318 ounces in December 2010). The record ounce production came from processing of 642,816 tonnes (also a record, with the previous record being 605,330 tonnes in May 2011) at 1.15g/t Au head grade and an average throughput rate of 919 tonnes/hour.
This record production comes on the back of decent quarterly results which has CGA trading at a forward P/E of about 9 times. Were it not for the sub-$1,000/oz hedges the earnings ratio would be closer to 5 times. Unfortunately these hedges run through the end of 2013 and it seems most investors are either too dull to notice or would prefer to revisit the story later rather than suffer any further bumps along the way.
11 months ago
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