gold breakout imminent, page-13

Greetings Squadger,
debt ceiling extrapolation as guesswork, absolutely which is why i added the red arrow to highlight the fact that the debt curve on the chart at this point in time is too steep.

All based on assumptions which will be interesting to watch.

Yes, PGI achieving extraction at pilot scale levels or in the ball park is certainly the key to any kind of decent p/e ratio.

Who knows what's around the corner for the price of gold but i take heart in the fact that even at current levels, many producers costs are blowing out as the low hanging fruit is consumed.

The way i see it, there's no shortage of companies the world over with decent sized deposits but very few with high grades so the poor internal rate of return will keep many of these projects on hold until consistently higher gold prices over a longer time frame could allow boards to risk giving the green light.

I don't doubt for a moment that many projects both past and future have been/will be whipsawed in and out of existence due to getting the gold projection wrong which brings me back to PGI, prove up the process or even close and the market will respond accordingly because how many companies have the possibility of producing at under $500?…….This is the only one that i know of.

Prove it up and PGI almost becomes future proofed (6.5 years) as a gold price falling to as low as $1200 for example would see a tsunami of currently producing mines mothballed.

Higher gold prices and gold bugs have many options as investment vehicles but a lower gold price would see amplified interest in the few profitable ones which remain and i'd expect a somewhat crowded market place for them.

As to litigation against the process if not quite up to scratch, in another life, i tested jet engines for a major player and i'm unsure whether this remains the case but Rolls Royce were paying them the difference each year between the actual fuel burn v's the rated fuel burn for the RB211 engines fitted to their 747 fleet.

So a claims of this nature do happen.