As you may have read, I was previously of the same view. It was pointed out that BLK had a far smaller number of reserves around 700k compared to Resources of 6m oz. although POG has been a major factor, I do wonder that until commercial production is at full capacity, BLK will trade at a discount. My thoughts are that within the next 3 months, pog will trade down to 1000 USD but aud will fall with it. 1400 audpog should be the limit of downside. However imperative that 2000 oz per week or 25,000 oz per QTR is achieved or cost per oz may be north of $1450 if you count debt repayments and Head office costs.
Let's hope full production is achieved and $1250 per oz is achieved.
Merry Xmas to all and let's hope 2017 is a good year.
BLK Price at posting:
43.0¢ Sentiment: Buy Disclosure: Not Held
