Hi, I stated in another post that the Brazilian Real in still...

Hi, I stated in another post that the Brazilian Real in still dropping which is pushing the price of Gold in Brazil to record high levels, but it's obviously harming our exchange rate with the Aussie Dollar which hasn't slumped the same amount to the US Dollar. This problem was one of the factors that caused the reduction in profits for CAS from the previous financial year.

Things aren't getting any better in Brazil with the S&P reducing Brazil's credit rating to junk status.

https://www.rt.com/business/314924-brazil-agency-downgrade-junk/

You'd think the Real will continue to fall to the USD unless they can find a circuit breaker to the problem of unemployment and perceived government corruption. The only positive I can find is that a country so desperate for cash and jobs would gladly welcome any development like Juruena, and Posse for that matter if Posse can ramp up from hopefully increased demand. I therefore doubt there will be too many hurdles regarding permitting or the like, you'd think that all tiers of government in Brazil would be bending over backwards to help CAS out with all necessary procedures.

I also predict that as China's costs become higher, (now only 10% cheaper than the US), South America will become the new source of cheap labour for the manufacturing of goods for world consumers. I think eventually things will turn in South America for the better, I don't know when, since people are willing to work hard at a cheap rate. I heard the costs of say a truck and it's driver on a contract rate, are one tenth of that in Australia, that's gotta obviously have a major impact on the total costs to produce an ounce of Gold.

The amazing exchange rate does also make Brazilian assets extremely cheap at the moment...