gold price 4cast $2025/oz2012 & $2280/oz2013

Hey Guys

We should always look at the economic fundamentals that will affect a miner's share price.

In IndoChine's case, it is the price of gold.

The $2025/Oz forecast for next year, represents a 20% increase in price from the current $1700/Oz, and a whopping 575% increase in the price of gold from the $300/Oz that Buffalo and Madison Minerals used to measure the 2million ounce NI43-101 resource.

Looking further ahead in 2013, after the PFS and BFS have been completed by IDC, the gold price is again forecast to climb to $2280/Oz. A 34% increase from today's prices and a massive 660% increase above the $300/Oz gold price that 2million ounce NI43-101 resource was measured against!

I think we are in an excellent position with IndoChine.

Cheers Nectar

BTW - Do you really think large scale institutional investors like Black Rock and Baker Steel would have invested in IDC if there were any issues with Management?

Don't forget Black Rock are a very large investor in BHP and have recently asked Kloppers for a "please explain" after his takeover of coal seam gas in the USA!

These guys have big pockets, very comprehensive research and experience mining industry investors. SO if you are trying to down ramp to accumulate more shares guys, then good luck to you! :)

They are our largest shareholder! They wouldnt have bothered investing in IDC if they werent expecting significant share price gain from significant upside.

BlackRock swipe at BHP
Peter Ker
October 26, 2011
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Evy Hambro: 'We are waiting to be educated by BHP on these transactions.'

Evy Hambro: 'We are waiting to be educated by BHP on these transactions.' Photo: Justin McManus

ONE of BHP Billiton's biggest and most influential shareholders has accused the company of keeping investors in the dark over its $US20 billion push into shale gas.

Global investment group BlackRock - one of the world's biggest investors in the mining and resources sector - warned yesterday that the market would remain cautious towards BHP until the company better explained why it had moved so aggressively into the controversial shale scene.

Speaking in Melbourne, BlackRock managing director Evy Hambro said the lack of clarity over BHP's shale ambitions and a paucity of capital returns to shareholders had helped quell investor enthusiasm for the global miner.
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BHP's Australian shares hit $49.55 in April but have fallen to just above $37 during a six-month period in which most ASX-listed stocks have lost significant value.

Under its ''tier-1'' acquisition strategy, BHP targets only large, long-life, low-cost assets, but Mr Hambro said that strategy was ''very narrow'' and meant BHP had missed out on many good opportunities among mid-tier assets.

''They've now embarked on a relatively aggressive [push] into a commodity that no one knew they liked [shale gas], and until they are able to educate investors as to the reasons why they have gone and done these transactions there are going to be some question marks around the use of that capital,'' he said.

''When you start putting something on your stall that you've never told investors about, people are naturally a bit reserved, so when you are suddenly exposed to shale gas you want to know why.

''We are waiting to be educated by BHP on these transactions … there are some question marks whilst we are in the dark.''

The comments come just days after BHP chief Marius Kloppers used a speech in London to distance shale gas extraction from the more contentious coal seam gas.

Mr Hambro said BHP did a ''great job'' on the $US10 billion share buyback program it conducted between April and June, but had made a ''mistake'' by not launching a second round this financial year.

''Share prices have obviously been very weak over the last few months and [BHP] could have easily been there in the market picking up their shares on a relatively cheap basis and continuing that share buyback plan,'' he said.

''Share buyback plans are a little bit like special dividends, if you only do one occasionally you don't get much credit for it but if you do one every year for many years in a row people start to build it into their return expectations.''

It is believed BHP plans to bring its petroleum division chief, Mike Yeager, to Australia to help introduce investors to the new shale assets.

BHP spokeswoman Fiona Martin said this year's acquisition of shale play Petrohawk Energy and the shale assets of Chesapeake Energy were entirely consistent with BHP's ''tier-1'' strategy.

She said returning cash to shareholders remained a third priority behind reinvesting in the business and returning the company to a solid "A" credit rating.

Mr Hambro said BlackRock believed the broader resource sector was very cheap at the moment, with opportunities that were ''too good to be true''.

He said the group remained most bullish on commodities such as coal, iron ore and copper, but had shifted away from platinum.
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Read more: http://www.smh.com.au/business/blackrock-swipe-at-bhp-20111025-1mi3t.html#ixzz1fFV9iZsl




'Gold may hit $2025 in 2012 and $2280 in 2013'


LONDON (Commodity Online): The growing demand for Gold bars and coins reflects safe haven demand, while exchange-traded fund buying in November has recorded inflows, said Anne-Laure Tremblay, precious metals strategist at BNP Paribas.

According to Tremblay, the sell-off in gold holdings may have occurred in the over-the-counter market, which is dominated by institutional participants. The decline in exposure to gold may be linked to large-scale, cross-asset liquidation. Notably, gold holdings may have been sold to meet losses elsewhere and added that selling in indexes may have also resulted in price falls.

This happens at times of extreme risk aversion and she says that when looking at Gold versus the ratio of S&P500 earnings yield to Treasury yield, risk aversion may be higher than in 2008.

“So does this mean the common perception that gold is a safe haven should be questioned? In our view, no. Despite the corrective episodes we have mentioned, gold has still outperformed both equities and industrial commodities since July 2011, suggesting it continues to attract buying interest,” she added.

BNP Paribas cut its Gold price forecasts for 2011 through 2013, following the recent pullback in the precious metal’s prices and said a further correction may be possible in the near term. The brokerage said another episode of extreme risk aversion in the short term could potentially see gold correct further from its current level, as its sales offset losses in other asset classes.

Analyst Anne-Laure Tremblay, however, expects bullion to continue trend higher until 2013.

“We see the gold price peaking in 2013, as the market starts to anticipate monetary tightening in the US, but do not expect a sharp fall thereafter,” analyst Tremblay said in a note.

The brokerage now expects gold prices to average $1,730 an ounce in the fourth quarter, down from its earlier forecast of $2,170 an ounce. Its 2011 forecast is down to $1,580 an ounce from $1,635.

BNP also cut its 2012 price forecast to $2,025 per ounce from $2,080, but its 2013 estimate climb to $2,280 an ounce from $2,200 an ounce.



http://www.commodityonline.com/news/gold-may-hit-$2025-in-2012-and-$2280-in-2013-44082-3-1.html