Loki is a bit flighty when it comes to gold and gold stocks.
I find that conviction works if you are on the right stocks. I held RMS all the way up against a gold price that fluctuated, including the last fluctuation that took it down to US$1,050/oz. The fluctuations didn’t effect that stocks long run performance while I held it. The company grew production and cash in its kitty and that’s what drove its performance. Look at NST, it’s share price has defied all gold price fluctuations over the long run. I sold out of RMS because one of its projects didn’t meet my expectations on grade and I’m not convinced that FY2019 guidance will be as easy to meet as the mine plan suggests (given timing issues and mining approvals etc still need to be obtained), not because of the gold price. I’ll revisit that company when some of the dust settles on its FY2019 performance.
There are currently a couple of fantastic opportunities for the future out there in ASX gold land just ready for investors with conviction to reap long term rewards IMO. Now is the time to shop not drop but you’ve got to know where to shop.
The place to shop now is world class long life of mine companies that are just starting to develop new resources for the future. Then you have junior developers building long life new resources with low AISC which should also be good investments now for the future. Please note my emphasis on “new” in new resources.Esh
EAR Price at posting:
16.0¢ Sentiment: None Disclosure: Held
