Hi binwood, yes, like you I don't understand the reactive selling approach. You (and JID and other talented posters) have far greater skill in analysis and explaining than do I. Happy for any of you to correct/elaborate my point of view to the "reactionaries" that the value of a gold miner is a complex mix of the following variables:
Value = (POG inUSD) X (AUD Exch.rate) X (Real Exch.rate) X (AISC) X (Production Oz) X (Hedging price) X (Au reserve) X (Au resource) X (no. shares on issue), etc.
For example, for a dynamic and expanding gold mining company, even a significant 10% fall in the POG (say, from USD1250 to USD1,125) plus massive 50% incr. in issued shares can be mitigated by the combined effects of, say, an 3% drop in AISC + 3% incr. in production + 2% drop in AUD exchange rate + incr. in in-ground value + whatever other positive factors arising. We need to look at the entire big picture, rather than at just one or two variables, which are usually POG in USD and AUD exch. rate. And we probably have our own preferred tracking tool to keep check on the movements of these variables.
Cheers, all.
BDR Price at posting:
27.8¢ Sentiment: Hold Disclosure: Held
