Ann: Updated Exploration target for the Never Never Gold Deposit, page-50

Extract of part of an article in S.t.o.c.k.h..e.aa.d just now. The essence of the article is that gold stocks are cheap relative to the POG which will give way to M&A and a closing of the gap between POG and gold stock valuations for patient investors. There is more of teh same in the article.

“In July 2020 as gold prices approached a then record of US$2075/oz in the wake of the Covid-19 pandemic, Aussie gold stocks surged to new heights, with the ASX All Ords gold sub-index hitting an ATH of 9528 points.

Fast forward to March 2024 and gold prices have eclipsed those now antiquated records, yet the sub-index is trading at just 6955 points.

With gold at US$2180/oz, bullion is some 5% above previous historic highs, yet miners have tumbled more than 25% over the same period.

It could create an enormous arbitrage for gold bulls who stick to their guns, experts say.”

I“Any bounce on news is an opportunity to sell. There’s a massive discrepancy and it’s an inconsistency,” Argonaut PCF vice chairman Liam Twigger told *.

“Normally you’d see them rise. Historically, junior explorers and developers might trade at $60 an ounce and as you make more progress, you get up to $200 an ounce.

“But these guys are under $20 an ounce and there’s a huge amount of leverage.

“The opportunity is on a massive scale and I’m sure we’ll see more corporate M&A taking advantage of that, especially those that are close to infrastructure.”

In decades trading gold mines as a corporate advisor, Twigger has never the gulf between gold prices and equities “so wide”. That will give rise to more takeovers and mergers as bigger companies look to use scrip to boost scale and engulf undercapitalised juniors.

“There are so many very cheap juniors that will be merged and we’re seeing that up with Horizon Minerals (ASX:HRZ) and Greenstone Resources (ASX:GSR) coming together and I think there’ll be a lot more of that.”