Here's Morgan's take on recent strength in leading Aussie gold stocks:
NST hit an all time high today
picked up some more SLR at 57 today.
The AUD has weakened against the USD, but the AUD gold price has lifted, and AUD revenue for the miners would be up. Gold miners operating in Australia would benefit from a lower cash cost in USD terms, to the extent that some of their costs - wages - are in AUD. But that doesn't explain all of the divergence to me. My view is that the larger ASX gold miners, along with other large and liquid ASX-listed stocks, are beneficiaries of interrnational investors taking a view on the direction of the AUD.
SLR Price at posting:
58.5¢ Sentiment: Buy Disclosure: Held
