The ASX seems to be pricing PM explorers/developers/producers, further and further from fundamentals.
Previously brokers and hedge funds were using low-ball medium term PM prices as metrics in their valuations of companies stating that gold prices would not be sustained medium term, now many (including the likes of JPM, HSBC and Citibank) are calling $2000 gold by year end.
Today gold in USD dropped to $1770 but was flat in AUD terms, yet the likes of TRY, NCM, RSG, RED and MYG (ie goldies across the spectrum development) all fell, some significantly.
It seems that stock markets (or at least the ASX) as a mechanism for identifying company value is broken - I picked up a lot of EVGO today, a one cent premium to heads with three months left seems a reasonably low risk hedge to me, with reasonable support around 0.170.
News stream likely to be thin before December 31st, however listing on TSX should be done and dusted by November, hopefully other markets will see the huge potential EVG has.
EVG Price at posting:
17.0¢ Sentiment: LT Buy Disclosure: Held
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