Often we discuss MML and talk about the importance of the PoG in reference to the PoG in USD terms...
Yet I feel the PoG in Philippine Peso terms and the PHP to AUD are more important for effectively valuing a ASX listed gold miner that operates in the Philippines.
On this point, something very interesting is afoot that many may be overlooking...
An ounce of gold in PHP terms has rallied 10% since its January 1st to 54,500 PHP...
And it's now only 0.6% away from making a 1 year high in PHP terms!
A lower PHP obviously increases the operating margin as the mine's PHP based costs become relatively cheaper to the PoG.
In addition to this development it would appear that there has been a significant technical trend change with regards to the PoG in virtually every currency around the world (except USD) over the last 12 - 24 months. I've posted my thoughts on that here:
I think the next few days will be extremely interesting for the PoG in USD terms as we test some key resistance levels.
With everything that is going on presently couple with the technicals for gold looking as bullish as they have in 5 years, I'm starting to wonder if this may be the beginning of a turning point for gold...
MML Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
