Something BIG is moving in calm waters, page-21

Hey Chota
I wouldn’t worry about these ups and downs. I think it’s just natural variation, not special cause. My observations;
- gold Oz miners holding up really well. Seeing more and more money from o/s and US. This tells you money is still long gold
- Market cap at $280m with c. $110m in cash. Value of $170m is cheap !!
- consider even at $1350 ‘all in cost’ with a sale price (through good hedging) at $1680, that’s still $50m in cash (less say another $12m for exploration).
- so undervalued !! That’s just the baseline
- the real fire starter is potential for trade wars impact ...: fed needing to halt rates, coupl d with potential inflation. Plus rising debt. Now $20T +. All above a strong possibility at any time in the next 6 months to trigger gold. Could be explosive. AUD is going to >70c in my opinion by Xmas. RBA will reduce rates early next year IMO. Imagine 69c AUD with gold at $1400+. Reasonable probability
- will buy load more if short term SLR price drops to 50c
- by May 2019 - at $1, MC would be (only $550m) with cash >$150m. Making EV at only $400m. Whilst making anything from $50m (low) to $100m (high) a year
- Also expect ‘All up Costs’ to come back to $1200 - $1250 by 2020, and signalled to the market mid next year
- I’m still very bullish on $1 to $1.20 by May 2019
Cheers
Pez