ABU SP, page-64

Two sides to the coin as I see it.

No doubt the Goldies SP is heavily influenced by the US spot. Obviously, if you are mining and selling in US currency then there comes a point where miners just can't make money. This has to drag down the sector.

The other side of the coin is that Aussie Gold Miners should achieve lower costs due to supply/demand factors for contractors. Couple that with solid and relatively stable AUD spot prices, ABM (and others) have a pretty good foundation to build a profitable business.

Will this help the SP in the short term? Who knows ... What it will do is enable Aussie producers to put $$$ in the bank and build their business.

I feel more comfortable with a Gold price of ~AUD $1400-$1550 then ~US$950-$1100 for the stocks I own.

Given the Aussie $ buffer, I am far more concerned/focussed on management hitting their targets then I am with the AUD spot. If they stay on track and the resource pans out as we hope then the medium term future should be ok IMO.