Prophet4me
The harsh reality is Gold that can not be produced economically by virtue of that fact is worth zero. It is basic economics . To suggest I am short sighted is a bit rich IMO . As an investment you would place no value , as a speculator I agree you would place some value for mine and reserves. The market at present sits somewhere in between IMO
Would you buy a farm that produced sheep , with each sheep costing 200 dollars to raise but only able to be sold at 150. Would you pay anything for that farm
Valuations are dynamic and that same gold that attracts no value today could be worth 1 billion dollars , but it could remain worthless for ever .
The issue with PRUs value is that many years we were under the assumption that cash costs were circa 600-650 and although we were never given all in costs we never estimated that they would be much above 850-900. Reality now is all in site cash costs are tracking at 1200-1250 ( company conference call guidance and so when add in corporate costs and at present there gold is being produced at a loss . The market however does factor in what you suggest , and that is a probability gold price will increase . If it didn't the stock will be trading at lower market cap .
Prophet4me The harsh reality is Gold that can not be produced...
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Last
$2.41 |
Change
0.080(3.43%) |
Mkt cap ! $3.315B | |||
| Open | High | Low | Value | Volume |
| $2.40 | $2.42 | $2.35 | $7.956M | 3.332M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 7 | 67667 | $2.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.41 | 68938 | 4 |
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| Last trade - 16.10pm 09/08/2024 (20 minute delay) ? |
| PRU (ASX) Chart |