RE:tough market for gold JAYDEE16 wrote: looks like the bears want to chase the 1180$ price point. KOR shareholders must not get caught up in this market manipulation. Today the shareprice was showing strength almost closing at 1.18-1.20 but a late day fear trade had us down 6%..
I can just imagine if gold was trading over 1500$ a share we would most likely already be in the 3$ range with the grades coming out of yellow jacket..
Based on the data used for the first PEA at 1100 gold the NPV @5% after tax and royalties is negative. At 1500 gold the NPV is around 2,7 a share. So the leverage on the gold price even based on the first PEA is really really nice.
I am no professional but given the amount and grade of what the found at North Sierra Blanca/Yellow Jacket yet and given the fact that they system keeps getting bigger and bigger it really will be very interesting to get an updated PEA soon as no step out drilling of 2012 and 2013 was included.
As it seems they are just drilling as long as they keep on hitting pay and are not yet considering a PFS or BFS in the comming year. The have good partners so raising the money to drill should be possible but I hope that next PEA pushes the shareprice to a level that financing the drilling for the second half of next year is less dilutive. :-)
And I hope we are back at 1500 gold and above 3,5mio ounces of gold in different grades of certainty when Anglogold is making their takeover bid. And this then would be hopefully a little above 3 dollars. If I am allowed to make a wish for x-mas! ;-)
Just my thoughts. DYODD.
carinthian