RE:RE:RE:RE:Patients
This could be a situation where the market is taking a "show me" approach. TMM did not have the best track record, maybe the fund managers want to see Q2 income statements before jumping on this. If gold takes off, it likely won't matter though with the leverage of ALO to the rising gold price. They are a higher cost producer with an AISC of $848/oz in Q1. So at $1200 they net $352/ounce. At the current gold price $1253 they net $405/ounce, at $1300 they net $452/ounce and at $1350 they net $502/ ounce. If gold goes from $1253 to $1350, a 7.7% increase, their income would increase by 24% if AISC stays constant from Q1.