As previously mentioned in this blog Focus Minerals Limited (Focus) operates gold mines in the famous historical gold district of Coolgardie in WA where the company has built up the largest ground holding and embarked on a program of renewal and expansion with a large upgrade to output due in 2011.

Ord Minnett: “The company’s shares are currently trading at a 38% discount to OML’s base case valuation of Focus and at a 122% discount to OML’s upside valuation. In OML’s opinion this is mainly due to the market’s residual concerns over the quality of Focus’ asset base and the company’s ability to consistently achieve the planned gold production and operating costs for its Coolgardie operations and to be able to successfully unlock substantial value from its large gold resource base.” Read the Ord Minnett Report

Having amalgamated most of the Coolgardie gold district and having completed the refurbishment of its treatment plant FML is headed for a marked increase in gold production up from 62,000 ozs in 2010 to over 100,000 ozs in 2011.