RE:RE:RE:RE:RE:Signs of life?Did a quick analysis on a$10/shr target. Based on current production levels, earnings/shr, and a PE ratio adjmt. 4.2 to 6 (for a rising market), looks like a gold price of $2,300/oz would do it. This falls in my expectation. The nice thing is we have an increasing production base. So if gold price doesn't go up as high as anticipated you still get there on increased production. My share price target ( tongue in cheek) is $25 to $30 by 2026. We'll need about $3,500/oz gold price and 400K oz per yr. (very do-able).
As for the US $, it's strength is primary do to increasing interest rates faster thaan the rest of the world. Problem is their govmt budgets $5T and spends $6T annually and their deficients are going up. I realize interest payments would take years to reach a terminal rate, but consider this....4.5% on $32T represents minimum 20% of their budget. No one talks about this! Now they have a split gov'mt after the mid terms and yes, we are going into a recession.(less tax revenue, higher unemployment equals even more debt). I believe Powell will do his pivot by 2nd qtr 2023 to try to keep the economy going. If not, even bigger problems. Governments, now need inflation to keep tax revenues going up. Current strong US$ also has negative impact on trade....more debt!
We use to laugh at countries like Italy and Spain who had a Debt to GDP ratio of 125%+ 25 yrs ago and their currencies tanked. What do you think will happen to the $US, $CDN, Yen, Euro etc? Net result gold price gold up. Until these gov'mts realize fiscal responsibility is the only way out, currencies will drop!
Keep the faith boys and girls!