EVN is safe as houses, page-2

AUD is heading up against the USD, its now around 79.3 cents. AUD POG is back down under 1560, despite the USD POG being a around 1238. If the RBA raises rates and given that Oz is linked to faster growing economies in Asia, its possible for the AUD to get back to around 90 cents over the next 12-18 months. At the current gold price an exchange rate of 90US cents would make the AUD POG 1376, a loss of $AUD184, and the decline would be felt by all locally based goldies in the bottomline profits, including even good stagers such as EVN. That could bring the share price down closer to $1 rather than in excess of $2.20 where it currently stands.

The possibility of a much higher AUD is something for all of us goldiebugs to think about, and it is not a scenario I was expecting. Hopefully it will not get to that level and the AUD soon reverses back down.

Good luck punters.

loki (the bringer of joyful tidings)