And if the gold price doesn't achieve that price expectations, then what?
Although goldminers are a prominent feature of my ASX portfolio I'm prepared for an eventuality where gold is below that price. Only because the gold miners in my portfolio are cash and cashflow heavy even at the gold price below.
A lot of weak hands are in the stock if it is viewed as a gold miner first and a cashflow heavy business a distant second. Fundamental valuations of an enterprise will always be driven by how much money it makes. As long as the company's intrinsic value is increasing at a satisfactory rate. I'm more than happy to hold. Fair value will manifest itself on the SP eventually. That is a better perspective than hoping for the gold price to hit $3k USD.
GMD Price at posting:
$2.47 Sentiment: Buy Disclosure: Held
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