a pattern developing in gold If you look at companies with massive exposure in banana republic countires, their stock prices are decimated, Look at Eldorado, Barrick, Iamgold, and finally Centerra. Agnico Eagle seems to be the best performing major now with all of its mines in North America. As the banana republic countries wrestle with caring for its people with limited capital, we will continue to see royalty regimes renegoiated, higher environmental costs, etc, in short blackmail.
This stock has turned the corner and was overly punished. I think it will rise to two dollars in a year's time. I hold over 150 000 shares currently at average price of 94 cents. I would be willing to add another 350k shares up to 1.10. I have alot tied up in Penn West and am hoping I can trim 30 000 shares from the 200 000 I own to load up on this before it crosses 1.10.
There is pattern devloping here. Just As Chinese and foreign companies are investing massively in the tar sands, we will see a hefty premium paid for gold mining companies producing in safe jurisdictions.