Gold price, page-127

Before he starts spruiking a particular goldmining investment, this influencer points out that as the PoG rises, gold mining stocks tend to go up even more. This is due to the magnified effect that the PoG has on the profitability of gold miners. For example if aa gold miner is making 20% profit over their AISC, and the PoG goes up 20%, then their profitability doubles. This effect is greatest in the case of marginal gold miners (with high AISC). This was my rational in buying into CAI.

So far the market hasn't made the connection, or perhaps it just believes the current surge in the PoG will be short-lived. However, the more it looks like the higher PoG is here to stay, the more inevitable a re-rating of this stock becomes.

All IMO.