MON 0.00% 29.5¢ monarch gold mining company limited

is this the beging of the rise for gold, page-13

  1. 2,924 Posts.
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    Gold shares: An unbelievable chance of matt Badiali places you forwards, you a Hotdog business would operate themselves... After you dare a "Bude" furnished, which form stuff behind itself brought, insurance locked, rolls and all necessary spices force bought, you itself on the road. They sell Hotdogs for 2,00 euro and their business start well. We say that it costs you to approximately 1.50 euro to produce a Hotdog. Thus you make for gross profit of 0,50 euro per unit. Now we assume once that the people are ready to pay at one time 6 euro for your Hotdog. The people buy so many Hot Dogs for 6 euro, as you can prepare. Their profit exploded from 0,50 euro to 4,50 euro. Do you think that your business would represent a higher value now in the eyes of a potential buyer? ..., but the people in such a way see that momentarily not of course regarding the gold mine industry. Gold price rises, gold shares stops Of America largest gold producer, Newmont Mining (NEM), communicated recently the numbers for the first quarter. The incomes of the society were 60 % more highly than in the comparison quarter one year ago. The enterprise sold its gold for average 933 $ per ounce, 40 % more highly than in the same time 2007. Newmont could shorten the costs per ounce a little... however naturally, the true excursion made the gold price. The people pay now many more for the Hotdogs of Newmont... Do you know, what happened with the share quotation of Newmont? It fell. Capital investors should know it actually better. But as also is: The Ignoranz opposite the complete gold industry makes a fantastische opportunity for investors possible to come favorably to these shares. The gold prices doubled themselves from 427 $ in April 2005 on approximately 864 $ until today. And the share quotations of important gold producers hardly changed nevertheless. Also Newmont shares hardly moved in this phase (about 6 % upward). Usually shares of gold producers make a lever effect for you possible in relation to the gold price... that means: If the gold price doubles itself, gold shares can quadruple themselves frequently. (actually) a simple calculation if gold company A an ounce gold for 250 $ to produce knows and this gold for 300 $ sold, obtains it a profit of 50 $ per ounce. If the gold price 50 % up to 450 $ per ounce rises, then the profit of the gold company A from 50 $ jumps to 200$ per ounce... a profit of 300 %. And now we assume the fact that the gold price really comes into travel and further 100 % to 600 $ per ounce rises. The profits of gold company A take drastically too... They jump seven of 50 $ per ounce on 350 $ per ounce! Naturally the share quotation of gold company A would rise, there itself the profits of the enterprise verveilfachen. However this functioned not completely in the latter few years. Because of the higher costs of fuel, equipment and removals production costs rose nearly exactly the same, how the gold price! On 1 May 2006 the AMEX gold index (HUI) stood, which the large gold mining companies summarizes, with 380. Yesterday it closed with 389. The index moved in principle sideways... during one period, in which gold approximately 32 % rose. But I think that the messages of Newmont are an indication that gold producers really begin now to take cash... The quarter gain of Newmont rose 444 % in relation to the first quarter 2007. The high gold price comes finally to carrying. And the situation is the same as at other large societies as Barrick and Goldcorp... I believe that the gold boom is still enough, long time will persist... and concomitantly the cash-flow of the enterprises will increase, the gold produce... Good Investing Matt
 
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