Crazy world we currently live in, so I think that everyone is taking the current gold price for granted, and expecting it to keep rising (I do too, but yeah, nothing is guaranteed, as usual).
By taking it for granted, I mean that everyone should probably stop and think about how ridiculously high the gold price currently is already, and how much anyone mining is/will be making.
It's currently past US$3,000, and past AUD$4,700.
$4,700 and the AISC for the mining at the Star are $1,800 - that's a margin of almost $3,000 per ounce.
Saying that those margins are ridiculously good is a massive understatement.
Even a pull-back in the gold price of AUD$1,000, would still mean an unbelievably good gold price, and margins of about $2,000 per ounce.
20,000 ounces to start with, more ounces to add...and not hard to multiply the ounces by the margin per ounce and figure out how this could play out.
Cheers,
GB.
DRE Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
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