There are a number of reasons why Australian stocks are shorted.
1, Australian gold mines profits are largely reliant on a foreign exchange.. Gold at $3347 at .65USDusd $5149 au, or .75 USD $4462 $687 AUD loss per ounce 2 The gold price rise from $2400 has been trump tariff and the gold price is reactive, lets assume Trump will fail and the gold price retreats back to $2900 usd $447 USD loss per ounce
3 Worst case $2900 usd and at .75usd ounce. gold price falling to $3866 ounce 24% drop in the gold price. $1200 aud ounce
4 RMS $1700 aud cost per ounce, appox profit unhedged. $3450, less loss of $1200 aud at a gold price of $3,866 aud ounce new profit margin $2250 ounce,. Profit downgrade of 34% of 40%
This may be some of the reason behind shorting gold stocks
RMS Price at posting:
$2.41 Sentiment: Hold Disclosure: Held
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