RE: No Brainer
I agree this should be a no brainer. We do need continued higher gold prices since cash costs keep rising with the strong $C and high energy costs.
By my figuring cash costs would be running at US$375 to US$400.
With gold at US$500 and looking higher we have excellent potential.
4.25 g/t is pretty thin but on the plus side much better grades have been found recently at Kiena and there is all kinds of room for
expanded production down the road at Wesdome, Siscoe and Shawkey.
River has good grade at 10 g/t and the merger will leave us with a fair sized producer (100,000+ oz) in not too long a time frame.
The really good thing is that the infrastructure is all in place and does not present the cost problems associated with a new mine.
Once the market sees that the gold price will hold at a higher level this stock should move lots higher. Higher gold prices, growing production and improved grade makes me long this stock.