Gold prices up nicely overnight. At the current A$ gold price, the margins for future OBM gold production look particularly attractive on paper. Why wouldn’t DQ start hedging 40% of the first 3/4 years production at these types of prices? The ~$300 million OBM tax losses ensures all the cash flow stays in the kitty. My concern over the gold price is not that it’s likely going down in a hurry, but that the $US currency may tank and $A strengthen (thereby putting pressure on $A gold price).
It’s also going to be an interesting week at the Diggers Conference in Kalgoorlie to see where that early release escrow stock ends up finding its home.
i need a technical new price above 40 on volume before I can buy any more ... so maybe next week it happens.
OBM Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
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