Correct, the price of gold needs to go higher. Gold mining companies in Australia sick atm. Quality of deposits left to mine reduced and expenses increased. POG seemed headed higher and higher for a while and KAL looked set but then POG went Kaput and investors saw the damage to View and now Monarch. The problems the producers have felt has discouraged investment in explorers.
To raise capital they must either get something from lawsuit or sell some leases (they have indicated this is a possibility).
The plus side for KAL is that they are not producers yet so not feeling the pinch of current poor prices or hedging that producers are. So timimg will be the key. If they start production just when or after gold prices soar return to investors will be massive. If the pog does not go high enough then it may be sold so not a total loss. If it goes just high enough then investors will wait and see on production success first. the rpobelm here would be raising the funds to get into production.
From when I held I felt they needed to prove up more for Selene. An advantage KAL had over many other explorers with resources over 1moz was that the deposits could be in two major pits rather than multiple pits. Selene looked promising to be expanded with further exploration. More would probably be needed to know about the resource and to grade integrity. The grade itself would not be an issue if investors were certain it was accurate. So many jorc releases on gold grades have been proven inaccurate so investors wary.
Cannot see any major indicators that the s/p will go north anytime soon but if POG goes nuts then KAL will do a KAL and go up 100-200% at once...as it does.
Big difference in s/p when a resource seems likley to stay in the ground to when it is perceived to be economically viable. Just not sure if/when this will happen. I was like rabbitoh, full on gold bug but the gold lost it's shine rather quickly after glowing for a while.
Gold production down in traditional gold producing areas so maybe even supply/demand may affect gold price for a change rather than the alternate currency angle. Just do not know!
Hope KAL does well, the company did evrything right..just factors outside their control have been negative.
KAL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
