PFS gives an NPV of $120 mil for gold at $1300, and pit optimisation and study seems based on a $1300/oz price.
I have no idea why this is so low.
If you thought gold at $1400/oz would mean GRY at 13c (just say), then it is hard to believe someone can't make a killing by going long GRY and short gold.
Buy $100 worth of GRY and sell $1000 worth of gold.
Gold goes down 10% to $1400 and you make $100 on your short and lose $50 on your GRY, net $50 profit.
Gold goes up 10% to $1700 and you lose $100 on your short. Question is how much would you make on the GRY. Gold was at $1700 in Oct 2012 and falling and GRY was over 75c, so you might expect to make $200
I am in at 35c so would happily take 40c in a TO
GRY Price at posting:
26.5¢ Sentiment: None Disclosure: Held
