Gold One International Ltd formerly BMA Gold, on the JSE in May 2009 and the subsequent acquisition by Gold One of all the issued ordinary shares in Aflease Gold Ltd by way of a scheme of arrangement.

The completion and commissioning of the company’s South African Modder East plant in late June 2009 was ahead of time and under budget.

A first gold pour from Modder East ore was achieved in late July 2009, one quarter ahead of schedule.

At the Ventersburg project in South Africa, the second phase of resource drilling started and a pre-feasibility study was initiated.

Gold One raised capital of $27 million by issuing 86.4 million shares from Australian and International institutions in August 2009.

Gold One 6,191 oz of gold (Au), from Modder East, nearby Sub Nigel and low grade commissioning ore during the September quarter.

As at the end of September 2009, Gold One had cash of about $30 million prior to the repurchase of bonds. Over $7 million of gold revenue had been received by Gold One in the September quarter and this revenue had been offset against the capital cost of the Modder East development.

At late October 2009, Gold One remained on track to produce its budgeted 20,000 oz Au for the 2009 ramp-up year. At htis time, the Modder East project was more than 95% complete and with the production of gold on a regular basis, the company had moved from being a developer to a producer.

For the December quarter of 2009, Gold One looked forward to declaring both continuous and commercial production at Modder East and also anticipated moving into monthly positive cash flow at the Modder East mine, with better than expected grade and wider than modelled channels.

A pre-feasibility study over the company’s Etendeka gold project in Namibia was due for completion in December 2009. In November the mine achieved a maiden operating profit, and commercial and continuous production were declared.

Forecasted gold production
16,000-20,000 oz of gold in 2009,
100,000-120,000 oz of gold in 2010
and 180,000 oz in 2011.

Mkt Cap `$230m

Cash ~$25m Zero debt

Caveats: Dependent on Gold price

Summary: The company has a history indicative of good management in that they bring their projects in on time. They are becoming a reasonably strong producer. No debt is a good thing. Cash costs well below $300 per oz and dropping. By 2011 earnings should be around 100m per annum.