The challenge plough, will be whether DRM management have the...

The challenge plough, will be whether DRM management have the kahoonas to undertake such a plan. Sadly the market wants results almost instantaneously these days. Which if course is ridiculous, but here we are.

Barret, if the U.S gold price goes to $1000, I think it reasonable to assume the AUD would fall a bit further, which would mean even at $0.80/versus the USD, the price would be AUD$1200. Which would mean that DRM would still be making money. If they produce say 75k ounces per year, they might even make $15 million a year before tax. Not bad for a company with an E/V of $50 million.

The bounce in the gold price will reward those who bought Friday (across all the gold stocks), but I feel it will trend lower over the next couple of months. Eventually, the U.S dollar rise will halt. If only because the U.S economy is not really improving.

That being said, if one has the time, its very interesting to see how gold stocks have performed in the past when the gold price goes lower. I won't go into it, but I was surprised by some of the returns investors eventually achieved.

All IMHO.