china_goldmines_logos.gifChina Goldmines (AIM: CGM, CGM message board), the AIM-listed gold producer a few days ago said it will meet its production forecasts. Let's see what this company is up to?

The company, with offices based in Hunan, China had earlier developed three gold processing plants in its Shenjiaya Gold Prospect. The three processing plants have all been scheduled to run twenty four hours a day utilizing three eight hour shifts and should achieve the budgeted production target of 20,000 ounces this calendar year.


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CGM is floating under 100 pence barrier

Today Shares in China Goldmines finished trading at 91 pence or 1% lower since previous closing.

I think, China Goldmines is not over-exaggerating about its capabilities. 20,000 ounces seems to be a fairly reasonable figure and there shouldn't be any major hurdles to them achieving it. The other thing is the company's financial strength. The company reported that it had $25.5mm in cash at the end of June.

Reference

http://www.chinagoldmines.com