re: chart - time to accumulate! There are two Companies on the ASX Gold list shares that scream out and say (I am under valued).
BSG and KCN.
Both are low cost producers, Both have increasing production profiles, Both have PE Ratio's around 6-7. Both are declaring dividends above ASX standards. Downside is that both have operations outside Australia.
Both companies produce gold for less than US$200. and infact both are around US$150 or less placing them amongst the lowest cost producers in the world!
This retracement gives a great opportunity to accumulate a good position (although it won't hurt to wait for the price to drop a bit lower as the charts suggest!) at an extremely attractive price.
Big unkown is how much free cash can these companies keep dishing out (depends on what you think the gold price will be like after the war!). If you think it will be below US$250 then you shouldn't really be in gold. If you think it will hold above US$300 then you should be in gold and looking to accumulate.
Both companies look like they are capable of generating US$100 per ounce profit currently on production given a price at around US$300; more $ for a higher gold price, mmmmmm'm I like that!.
If you use a PE of 10 as say a reasonable estimate of what a dividend providing company should be trading at as a minimum then the upside is quite good and you can come up with your own estimate of price!
The main question you need to ask your self is "do you feel lucky, well do ya".
BSG
bolnisi gold nl
