Hey IDC Holders and Watchers
As economists we need to understand that it is the macro economic events that occur in the global economy that will lift the price of gold and gold shares in the coming weeks and months!
As we wait for IndoChine Mining to release their PFS in the next 2 weeks, the price of gold is expected to break $2000/Oz in the coming months once the US Federal Reserve activates QEIII either this Friday or mid October.
Once IndoChine releases the PFS, then we will have all the financial costings for the construction and operation of our Mt Kare gold and silver mine.
This will provide the institutional Funds, Broking Firms, Investment Houses in the USA, Europe, Asia and Australia to calculate NPV and annual profits for IndoChine mining, build a business case to invest in IndoChine Mining in the weeks that follow, which will lift our share price!
Our PFS is being released at the best time in the history of gold mining!
The weak US jobs numbers for August are again giving Mr Bernanke the mandate to activate QEIII. He has slowing US GDP Growth, slowing world growth, slowing inflation in the US opening up the opportunity for him to activate another Round of between $500-600Billion money printing, which will lift US economic growth.
Last Thursday we had the Head of the ECB Mr Draghi announce UNLIMITED BOND PURCHASES, to bring down Bond Yields which has kept markets weak for the last 12-15 months.
They will do this via printing money. 24 hours later we had the Chinese Govt announce a massive $157Billion stimulus package, on guess what?
With all this stimulus occurring concurrently from the three largest economic blocs on the planet, it is invariable that commodity prices and miners exposed to these commodity prices will enjoy a very large lift!
The effect on precious metals is clear, the last two times Mr Bernanke activated QEI and QEII the price of gold spiked then gold shares spiked in response to this price rise of the ore they were either exploring or producing!
We saw the same thing repeat over the last 4 years!
We are seeing the same thing repeat now.
Every time the gold price rises, our NPV rises with it!
Record high gold and silver prices, coupled with bonanza gold grades than run from the surface of Mt Kare for 10, 20, 30, 50metres will soon be reflected in the value of the company on the ASX!
IndoCHine Mining's time in the sun is about to start....:)
An absolutely brilliant achievement to date by Mr Promnitz and his team.
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