The Van Eck ETF GDXJ has put in another good performance overnight, up 1.95% to make it up 17% since the low of USD37.31 (29/09/2021). Although the Bullion Banks continue to cap the gold price at USD1,800, the miners are leading as they have always done. Only a matter of time, before the price of gold retests the highs of USD2000.
Recent commentary suggests that inflation will continue to be on the hot side as long as supply chain issues exist. Optimistic estimates suggest these should ease some time in 2022, whilst other more conservative estimates have these supply chain issues lasting several years. Given the talking points of inflation being transitory, and now stubbornly persistent, one could assume that the US Fed are trapped and attempting to soothe market concerns through empty rhetoric.
WAF has come out this morning with their Quarterly and although the AISC is significantly lower at around $700, it shows that gold producers are earning immense amounts. Once could assume that with the price of gold looking to move substantially higher over the coming months and years, the amount of M & A events will increase as those with large cash surpluses will look to add to their reserves. In some ways, canning the project and the associated year of build and commission may allow BDC to unlock value so much sooner through a sale to an existing producer looking to add ounces.
The chart I posted yesterday is still in play and it wouldn't be out of the question to see an attempt at $0.07 today.
