RE: Rumours We have to take the Toddster at face value. A mill will be purchased this year. In the meanwhile, would expect some manner of milling arrangement will be negotiated at better terms than the previous test. I have a lingering suspicion management felt they were shortchanged somewhere along the line with that last contract.
Here is something to consider:
since that bull-to-date peak, they?ve been consolidating and correcting.As of last week, the HUI had fallen 46% over 18 months.That certainly wasn?t the first consolidation in gold stocks? secular bull, and wasn?t even close to being the biggest correction.Yet it was enough to sour investors on this sector in an overwhelming way.But while sentiment drove stock prices lower, gold miners? profits continued to grow.
This mounting fundamental disconnect has exploded in recent weeks, leaving gold-stock prices drifting in some dark fantasyland totally divorced from reality.For contrarian investors who like to buy their profits cheap to maximize their future returns, this anomaly has created an extraordinary buying opportunity.This is readily apparent in the gold-stock valuations as measured by the elite components of the HUI.
The best gold miners in the world saw their stocks selling at prices where each dollar of profits only cost $13 in stock price to purchase.This is incredible from multiple perspectives.The last time gold stocks achieved significant popularity in early 2008, investors were eagerly paying over $40 for each dollar of profits.While they loved gold stocks then over 40x earnings, they hate them now at just a third the price!
Even at the nadir of 2008?s brutal stock panic, the scariest market event of our lifetimes, the lowest the HUI P/E ratio fell was 15.7x.So to see it plunge considerably lower to 13.1x at the end of February 2013 with no extreme fear was unbelievable.Gold stocks, almost certainly the entire markets? best-performing sector of the past decade, were pummeled to their cheapest valuations of their entire secular bull.
Read full report: https://www.24hgold.com/english/news-gold-silver-gold-stock-valuations-9.aspx?article=4289307148G10020&redirect=false&contributor=Adam+Hamilton&mk=1