Ann: Trading Halt, page-103

Talk of gold price recovery puts developers in takeover crosshairs
Emerging producers like Bellevue could be on the menu for the big producers, ditto for Peel in the copper space. Stavely shareholders soak up SPP and Creasy punts on Galileo neighbour Greenstone.
4th August 2022
Barry Fitzgerald
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There was not much to come from Diggers & Dealers during the week that could be classified as needle-moving stuff.

There was though confirmation along Elon Musk lines that being in lithium was a licence to print money and that the uranium sector (led by PaladinDN/Boss:BOE) was fast maturing as a serious investment destination in the critical materials space.

The overall mood of the 2,600 delegates that managed to brave Kalgoorlie’s high winds and Qantas/Virgin check-ins was said to have been mildly buoyant.

Being mildly rather than full-blown buoyant was put down to the buffeting of the gold price following its fall from a peak in March of $US2,078/oz to the recent low of $US1,683/oz.

Gold companies are still key players at D & D, so the description of this year’s event being mildly buoyant no doubt reflects the rebound in the gold price to this week’s $US1,770/oz.

Hats off to Evolution (EVN) executive chairman Jake Klein at D & D for doing his best to rev up the crowd – and the market in Evolution - with a big call on gold.

Evolution was a $4.50 stock back in March but got as low as $2.28 on July 19 as a result of the gold price fall and a disappointing June quarterly report released on July 21. It has since worked its way back to $2.66.

While Klein is busy sorting out the issues disclosed in the June quarterly, he is expecting a big tailwind to arrive for the company, and the rest of the sector, next year.

He reckons that this time next year, gold should be between $US2,000/oz and $US3,000/oz. Happy days.

“There has been a fear factor over the last six to nine months. The Fed has come out swinging and talking very strongly about their intent to raise rates until inflation is under control. I just don’t think that’s possible,” Klein told reporters.