Sell Off, page-10

As I postulate PRU cash costs higher, production lower than expected, cash burn higher than expected, offset by higher grade mill feed and higher hedging price spent otherwise this would have been a much worse result. Der CR cash being chewed up fast, der GST refunds from africans chewed up and dey still not paying dese credits for long time so tax dispute still live as africans need $US for pensions and to avoid riots or civl war like nextdoor countries. Cannot pay big refunds to PRU. Argue long and hard at some point PRU stop paying tax like last year and could be bad moment. If hedging remaining drys up and gold price stays low, could be danger for PRU.

Last bad result saw drop of SP 40% in 7 days. Gold price down $13US overnight to $1297. but no big sell off today at open but sell off at close (sellers exceed buyers in last 1 hour trade by 4x) very bad sign, many expect tmrw much worse and lower. I postulate unless gold price stay $1300-$1400 traders and short sellers will sharply sell it down like last few times in last 2 years as this is favourite short sell stock for them. Dis is a momentum stock and when no momentum it will be forced to move down. Whilst dis bad news priced into stock already what other calamities may befall good old PRU? electricity fail, plant fire, workers reduced, tax dispute. Macquarie says this is 2015 story but it now 2015 FY 1 month in already yet costs higher and cash burn larger.

Gold in US$ might drop until global inflation and rate rises next year - russia, turkey and indonesia rate rises this last 2 months just the start. Once starts in UK Euro and US den gold solid form upward. wait for bottom, directionless means no direction up on charts.