re: multimillion ounce potential along 50km The problem with PSV as I see it is their hedge book. Technically it may be breaking out but fundamentally it still has production hedged.
http://www.safehaven.com/article-5078.htm
To buyback or not to buyback?
"The gold price rise is almost exactly the reverse of the market when it fell to the "Brown Bottom" of $270 [the price at which Britain was selling its gold] and so much additional profit seemed to be gained by hedging.
As the gold price fell, hedging became the clever, conservative and profitable thing to do. Now that the market is rising these positions are becoming an embarrassment. With most hedged positions averaging in real terms around $430 [including the 'Contango'] and with the opportunity cost of $200 at present, even the most resilient of gold company executives holding these positions must be sweating buckets.
In the end, the producers with huge hedge books still will have to take action to close them. With targets indicated on the above chart, the 'opportunity cost' feel far more like losses and will be held as such by shareholders. If the targets above are achieved, these hedged positions will achieve only half the market price for gold at the time!
We find it nigh on impossible to believe that the producers are not buying back these positions. We fully expect them to be adding to current demand."
PSV
perseverance corporation limited
