inside trader, page-10

G'day Tokyo. You have an optimistic perspective to that chart of GDXJ (nothing wrong with that). But, IMO, it looks awful and could just mean more of the same to come. After every bounce on a down trend there must be some point where price is at the same low as the previous one.

But I hope you are right. Vending projects at the moment is nigh on impossible. Where you might have got deals worth $20m for something back in '06, today you can't even get a fraction of that. The prices of the underlying commodities are still reasonable, but investor interest has been curtailed significantly - as reflected by the GDXJ. We are back at levels last seen during the depths of the GFC.

Red5'ers should be OK if production targets can be met and sustained. But it sure has been a long wait, and obviously this investment environment doesn't help in any scenario of delays.