Thought I might follow up on my post from last month in light of recent falls from EVN and SBM. Both were trading at high levels and the fact that production guidance is flat YoY, with costs increasing, has spooked the market.
I think this is signaling a new stage in the Australian gold market where the mid cap market darlings have reached their organic production limits and the market is worried about growth and reserves. And overseas miners are facing similar problems (but not falling from all-time highs). Barrick's costs are up US$150/oz year over year (stock was down 6% last night).
Meanwhile Dacian about to advise on scale of Cameron Well and set the scene for mine life increases at one of the only new gold assets of decent scale/cost in Australia. One thought I had was that extinguishing the royalty may also be tidying up the company in case a predator came knocking.
DCN Price at posting:
$2.81 Sentiment: Buy Disclosure: Held
