I saw this recent article in Sydney Morning Herald on 16th February 2015.
It looks like mindset is finally changing and things may have turned a corner in the Aust Gold Sector, not to say all in this article is relevant or specific to GOR, however, it reads well overall for the Aust Gold sector generally.
Cashed-up mining specialist private equity funds in the United States and Canada are preparing to buy into gold projects held by ASX-listed juniors starved of capital and funding.
The North American funds' interest in Australian assets follows a flurry of equity raisings in Canada last month, which saw US-based private equity firms pitch in almost $100 million.
Liam Twigger, managing director of Perth-based resources advisory firm PCF Capital Group, said funds were looking at deals of $50 million to $100 million in the Australian gold sector.
"North American private equity funds are coming through with some pretty attractive proposals for some of the better gold assets that are seeking funding," he said.
"The market has picked up in January and we've seen a flood of interest from these funds."
The following comments within the article I personally found interesting when you compare the recent (GOR) Gruyere initial resource announcement/s for gold in ground;
"Private equity recognise that resources in the ground, and gold in particular, are very much undervalued at the moment and are due for a re-rating," he said.
"Projects here are trading at $4 to $10 an ounce, that in a normal market you would expect to be $50 to $60 an ounce."
The funds were taking a longer-term view that the huge discounting of development projects was cyclical not structural.
"These are mining specialist [funds], very sophisticated players that recognise an opportunity, they are out to make 10 times the money and can see opportunities that will make that.
Also of particular interest to myself was the last paragraph of the article which states;
The Australian Financial Review was told last month Australian institutions are piling back into local gold miners after a prolonged stretch of being "naked gold"
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