NCM are suffering from their own internal issues and poor management decisions , not just the POG coming off the boil .
A producer shouldn't always need all time high gold prices to maintain a stable and profitable business., NCM have failed at this and thrown too much $$$ into big ,low grade , high cappex projects ( largely assuming that gold prices would stay high forever ....)
Also, NCM like many other majors decided to start mining their lower grade ores when the POG was higher , instead of focusing on their best ore bodies and really making some huge profits when the sun was shining . I guess that strategy was a bet on the POG remaining closer to $1900/oz just like every other gold bull made. But this has now backfired on them and they must change their tact . Not too late for NCM to turn things around .
Taurus fund they shut down was open since 2006 from memory . Lots of profit probably taken off the table lately , so they wound it up . Only two were guys running the whole thing ,, so was only a small fund and little impact on anything beyond those engaged directly with it .
Companies like Amx,GRy,PVM with plenty of shallow gold above 1.5g/t are in a good position within the sector and all have enviable assets . It will be deposits like theirs , not the high cappex porphyrys like NCM's that will be sort after in a lower POG environment .
Back to taurus quickly .... Perhaps the precious metals fund closing down will free up some more money for gold stock positions ?? Perhaps ?
AMX Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)