Overextension occurs in every market, value depends on your investment timeframe. Lihir is a marginal producer, if the price of gold increases substantially (and gold fundamental suggest it will), Lihir's profit increases exponentially. This potential rise is factored into the price to some extent. Additionally, Lihir's enormous reserves & long life mine provides a leveraged option in gold price increase. The ridicule that is metered out when a suggestion is made that gold could double or triple in price, is an indication that gold probably has a lot further to go.
LHG
unknown
1.99, page-4
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