Structurally I think the pog has rerated for the foreseeable...

Structurally I think the pog has rerated for the foreseeable future given the inflationary environment. given the current interest rate level, it seems about the right price to me. I think even if there is a continuation of hikes, inflation and uncertainty should still underpin golds rerate. From memory 1350 was a key level, so one could argue that 1500-1600 is the floor and even if those prices hit the aud gold price should be supported because under that gold price I assume the aud would be getting smashed sub .60. Significant positive events though on the inflation front could only cause this though so base case for me probably more like 1600-1700 safe range.

Chinas full reopening could also possibly mean more demand coming through for the metal sector. Copper still elevated too so imo, we could definitely see a double inflation spike. Under that scenario, gold might get hit as interest rates continue to rise but imo inflation will be sticky and help gold. Central banks will give up at some stage and when they do that’s probably when the pog will go up as the strategy is shifted to let inflation eat itself out through high prices. That’s still a bad scenario nonetheless because Gcy’s costs are through the roof. NN and continued extension down plunge is the only thing that could save our asses but it needs to continue growing in size so that it’s not looked at as a one trick pony with a finite value. If there wasn’t any follow up to NN before it was discovered then who knows what else lies underground. Is there a feeder system that could connect NN with gilbys is my question and if so where is it, how much is there, and can it continue to be extended (a dream scenario and a Hail Mary for Gcy into the future). If joelstar is right and the assays continue to be good then someone will stump up the money to drill and of course they will make the big bucks but we could have a shot of breaking even or making money as well (assuming no addition to current position).

these are my musings and of course it’s safe to say I have no idea what I’m talking about, as any investor worth their salt probably would have realised the looming cash hole the company would be in, thus not investing until after more money is raised. Yet first sentier and mitsubishi were increasing their holdings up to the suspension so perhaps I’m not that clueless? Silly me I tried to trade this thinking the pog will go up and it did but the vehicle was a potentially terrible choice. The same exact thing happened to me with dcn when I bought at 1.62 and a couple of days later, trading halt, then by Wednesday boom, half their jorc ore reserve was missing and so tanked to under .40 by Friday only to eventually rebound to 1.62 again and well, we know what price it’s at now.

Let’s hope management can surprise us and outperform with the help of major shareholders and Ashanti and co.

gltah abd dyor