A very interesting post see image below. Since 2005 there has been a strong positive correlation between gold producers cashflow and their share prices.
There is now a big disconnect between share prices and cash flow to the extent there needs to be about a 50% increase in share prices if the correlation is to be sustained at current gold prices.
The uplift in individual gold stock share prices will not be uniform. If gold stocks are repriced upwards those with better cash flow will perform much better than those who have lower cash flow relative to the current share prices. SPR will likely be in the former.
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