Investment summary

Gold One has announced that the A$0.55 cash per share offer to its shareholders from a consortium of Chinese investors has now become unconditional. All outstanding conditions have been subsequently waived, including that the consortium must obtain a 60% interest in Gold One (fully diluted), freeing the consortium to complete the transaction. The offer is scheduled to close on 15 December. Gold produced up to 25 November was 113,569oz suggesting that the company’s target of 120,000oz for 2011 will be met, thereby avoiding conditional dilution from any production shortfall.

Last updated on 09/12/2011

Industry outlook

Although threats remain over the state of the European and world economies, actions taken by the world’s central banks on 30 November suggest the official response is still tilted towards a loosening bias, creating an environment in which the monetary properties of gold as an investment become pre-eminent. While our long-term price for gold remains a (conservative) US$1,350/oz, in the short to medium term, we perceive the opportunity to be to the upside.

Last updated on 09/12/2011