is there value in abu at .021, page-67

From DJ newswire quoting Alastair McCaig of IG on gold;

"On one side we have the negative
sentiment for the commodity, and on the other is the fact that a number of the larger
gold miners have already stated that a prolonged presence below the $1,200 level would
seriously threaten the viability of a number of operations," He also said that prices below $1,200/oz could trigger a series of mine
closures.

That is along the lines of what I have posted recently that US$1200 should be a longer term base price I like to use to estimate a base case value for ABU. It would be helpful if the AUD can break below .89 to give us a higher base case AUD POG. At 89c and US$1,200 the AUD POG is A$1,348. At 80c it would jump to A$1,500 even with US$1200 gold. Current spot is $A1,385.
While the price might fall below US$1200 (A$1348 at 89c) for a while, it is the average price for the year that needs to be looked at for valuing a gold stock.