Troy Resources NL, dual-listed on the Australian and Toronto Stock Exchanges (code: TRY), is a junior gold producer with operations at Sandstone in Western Australia and the Andorinhas Gold project in Para State, Brazil.
Troy Resources' John Dow sees upside in gold price
(Ross Louthean, Mineweb.com)The chairman of Troy Resources Ltd (ASX & TSX: TRY). John Dow, told a briefing of business journalists that the consensus was that the way forward for the gold price was "up" driven by a weaker American dollar.
The United States was printing money as a salve for the country's now chronic debt problems and to also fund the war in Afghanistan, and there were serious inflation concerns resulting in the US dollar being marked down.
The picture was not so rosy for Australian gold producers because it has risen dramatically against the US dollar and the return for gold today was less than eight months ago, despite the solid appreciation in the gold price.
Troy Resources produces gold at Sandstone in Western Australia and from the Adhorinhas mine in Brazil and was advancing towards production on the Casposo project in Argentina. The Brazilian real and, next year, from Argentina's peso would provide a better currency denominated return than the strong Australian dollar.
Dow was the chief of Newmont Australia after Newmont Mining Corporation took over the big Australian gold producer Normandy Mining which had gold operations in Australia and New Zealand. He has been a key figure in policy issues at the Australasian Institute of Mining & Metallurgy, is chairman of the new NZ mining lobby Straterra, and chairman of NZ explorer Glass Earth Gold Corporation and new Kiwi coal company Pike River Coal Ltd.
His briefing related to his independent director role at Troy Resources where there has been a major boardroom dislocation after veteran director and major shareholder John Jones sought a meeting to remove chief executive Paul Benson and two other directors Denis Clarke and Alan Naylor, and replacing them with three of his nominees.
Dow said this issue had had a negative impact on the company's share price right at a time when sophisticated investors were taking a stronger interest in the company, perceiving that it could grow into something bigger than a junior miner.
He told journalists he could not predict the outcome of the boardroom battle and even if he had clear figures he would not disclose them. The meeting takes place on November 16.