re: Ann: Company Interview. Strong Outlook f... POG held up...

re: Ann: Company Interview. Strong Outlook f... POG held up well. It has been trading between around $1210 and $1250 for nearly a week while waiting for the much anticipated jobs report for direction and it held within that range after the report.
It had an initial not surprising drop down to $1211 after the much better than expected employment numbers of 203,000 non farm payrolls. GS were expecting 175,000 and said that consensus was 185,000 therefore 203,000 was a big beat. Typically we might expect a $30 or $40 drop on that sort of data and some of the bears were predicting a drop below $1200 and/or retest of $1180 if the jobs report was stronger than expected. However after the initial reaction down, the buyers came in quite quickly and POG finished the session up at $1230, well off what was just a very short lived spike down low. $1180 was not threatened and the spike didn’t even test $1200 with the low at $1211. This may be a sign that some shorts are willing to start covering and/or longs are happy to add at these levels. This in turn might get other shorts worried. If much stronger than expected employment numbers couldn’t push gold lower after nearly a week of consolidating while waiting for the report, is it worth holding shorts now or better to buy back to lock in profits?
Any rise from here may lead to a big wave of momentum buying as shorts scramble and longs buy into the rally off these very depressed levels. Let's see what happens next.

Copper prices also gained, back up to $3.21 which is positive for Didipio.

The company has recently given guidance for another strong quarter despite these near record recent low prices for both POG and copper so if we are going to see a bounce in prices then this quarter may surprise further to the upside than the last quarters great results. Grades across the group are expected to improve and cash costs are expected to fall. Any price rise will add further to the already improving margins. This quarter will be strong in any case but I would love to see a rally in POG from here and preferably copper as well. We also should hear more about the silver which made a surprise contribution last quarter. In the recent web cast they said they would try and provide guidance on expected contributions from silver going forward. This is a very strong company with strong margins and more of an investment compared to most other gold producers on the ASX.