POG is up from $A3,000 to $A3,937 in one year (see image below). With industry AISC being around $A2,000 producer margins have almost doubled in one year while profitability (ie including costs not in AISC) will have increased by at least 133% to 150% (maybe even more) - yet GDX and GDXJ have only increased by 41% and 48% in the past year (not much more than the increase in POG) - gold producers share prices are seriously lagging the massive increase in their profitability. Why? I can suggest 2 reasons firstly investors are focused on the tech sectors huge gains and the sharemarket great gains in general and secondly general investors do not believe POG at current levels will be sustained.
