RE:Gran Colombia Announces Second Quarter 2021 Productioni like how gcm is announcing their silver production number now. before they completely ignored the silver production number. silver miners usually trade at big premium to gold miners.
gdxj down 4%, gcm down 2.4%. all the gold producers are trading way below the gold price because they are expecting the gold price to drop when the fed raises interest rates. powell already said rates would not be raised for a long time, so the gold producers need to go up to match the level of the gold price. at $1800 gold almost all the gold producers are making fat profits.
not exactly the same, but karora with ~110k oz/yr production is selling for $544M market cap, higher than gcm $466M market cap with 200k oz/yr production. karora hopes to double production to 200k oz/yr by 2024, while gcm is already producting that much now. and karora does not have a 10 million oz gold project or $150 mil worth of share investments of gcm. by the time karora produces 200k oz/yr gcm would be at 400k oz/yr.
there are many examples of miners with half the production of gcm selling for more than gcm, and without the extra assets and 10 million more gold oz of gcm. that huge gaping difference in price needs to change. in the past gcm sold at a discount because of country difference, but that discount has now widened into a grand canyon gap. the stretched rubber band needs to have a reversion to the mean. gcm huge free cash in the second half should help with that reversion.