firdy
That's my thinking exactly -
Juniors that will become low cost producers with big or growing resources -
I'm aiming for cash costs of $350/oz or lower.
But there's 3 more boxes they have to tick for me -
1. they must carry no Debt
2. They must have the plant and equipment to start mining.
3. They must have a mining licence and have started to mine.
Why look for ones with no no Debt ?
Let's say you've done your homework and you find a couple of good candidates and ignore their debt levels - at the EBIT stage the debt interest may take another $100/oz or more away. This adds $100/oz or more to the production costs which looked cheap.
also the ones with no debt wont need to capital raise - especially if they have started to produce and have a positive cash flow.
I cant believe the indiscriminate carnage that has happened to gold stocks with both low cost and high cost producers being hit.
Low cost producers should have escaped.
amongst this carnage I believe I have found 2 low cap juniors owning all their necessary plant and equipment and that are starting to produce with no debt.
So hopefully one good thing has come out of it - the future will show whether this is the case.
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