CGLD is trading at 88 cents heading into a weekend in which everyone gets to read that ...

"Monthly gold production is currently running at approximately 4,200 ounces.


"This is a significant increase in gross proceeds compared to our fourth quarter and the equivalent period of last year," Capital Gold's President and Chief Operating Officer, John Brownlie, said. "We anticipate production to increase once the additional crushing plant module and the new leach pad becomes operational by the end of this calendar year. The full extent of these production increases will be determined with the completion of the SRK study which recently upgraded the proven and probable reserves to over 1.5 million gold ounces. Capital improvements, completed in 2009, added significant processing capability through the ADR and refinery plants. The new mine plan will optimize the mining and processing of additional gold production based on the expanded reserves at El Chanate."

4,2000 ounces a month works out to 49,000 ounces a year, or $50,000,000 in revenue at a thousand bucks an ounce, and diluted net income of 6.5 cents a share.

Factoring in CGLD's likely significant boost in its gold mining production process before the fiscal year's end, we're very likely to see forward-looking net income closer to 10 to 15 cents a share.

With 1.5 million ounces still in the ground, this company looks to be a serious cash machine for the next 15 years at least.

Prediction: CGLD will hit $2 by January.