price of gold Gold analysis think 1450 an oz
Are investors stating that unless gold is $2000.00 an oz companies can't mine gold for a profit.
K. t mined gold at $250.00 an oz silver at $2.50 an oz many years ago at a profit.
So if companies cannot do this anymore lets ask the OSC to make some rules when gold reaches $1400.00 an oz we ask the stock exchanges to not let companies raise money for gold exploration, or mine development because well they can't mine for profit so all investors will lose there money. Acually it would be a scam to rise money if its not possible to make a profit. So every company would have to make new disclaimers that we can't make a profit. Can you imagine Goldcorp or Kinross stating this who would invest with them or buy shares.
What it means companies like Kinross are not going to be able to pay the CEO 45 million dollar salaries/bonuses a year. Mining teams will be responsible for two or three mines now instead of one.
there will not be 35 % premiums offered to companies for their properties in a takeover.
Small companies like VIT will not be able to pay CEO's 3 million a year salaries / bonuses or the shareholders are going to blast them.
It means not wasting money the banks are going to make big bucks on PP's. There is going to be some belt tightning in the industry.
I believe they can make a profit at 1200 an oz gold, but they must operate with the idea to conserve cash.
Investors are going to be selective in which companies to invest, the ones that state the CEO is taking a salary is where the money is going. ( MUX )