Shortages already being reported by jewelry industry:Investors are turning to physical gold in huge numbers right now in order to avoid the risk of holding paper or stock in the gold producers or mining and metals sectors. They are buying huge amounts of gold coins and bars and there are simply not enough in circulation to fill the demand. Can gold continue to creep upwards with its recent reversal from the low of $1196.00/oz-$1200.00/oz.? Today, it did hit the $1260's/oz and Dustin's announcement on Monday regarding the Romeo and Juliet zone was encouraging in that the ore body appears to be close to the surface and relatively cheap to extract and refine with our nearby Mill Facility almost next door. By the end of this calendar year 2013, it is realistic to believe that we could have 3 mining sites in production with our nearby Mill possibly needing some expansion work: the zones right now include our Pine Cove Mine; the Western Extension and the Romeo and Juliet zone, all amenable to open pit mining, for the most part. I notice that Maritime Resources is reopening the Ham*****own Mine to the south, which is rich in gold pyrite and will most likely turn to Rambler's Nugget Pond Mill Complex to refine it. Remember that one folks....the one that got away!!! We should have had it. It is multi-use milling facility able to handle copper, gold and silver etc. The Mill itself sits nearby the Nugget Pond gold deposit. So, Rambler scored big time for $3.5 Million and nabbed a great property with Nugget Pond and the nearby Ming Complex as well as the Mill facility that only needed minimal refurbishing and renovation to bring it back into a much needed refinery. Since then, of course, Rambler has done extensive additional expansionary work and has turned to a nearby port facility on the Atlantic Ocean side to ship its copper concentrate overseas. What a steal for $3.5M. Rambler has done a wonderful job with the Mill Facility and today, it must be worth 5X what they paid. Our own Pine Cove Mill Facility is probably worth $15Million at least, for which the market has given it zero value and totally discounted our highly enviable debt-free position. Rambler holds a load of debt and in spite of much greater production metrics than ours, Rambler continues to operate in a negative cash flow position unable to turn a net profit on its gold and copper production.
I will soon continue buying ANX stock again once it appears that the price of gold has stabilized out at the $1200 level. Today, Kitco has reinforced its belief that gold will rebound into the $1300-$1400/oz level by years end. Going long and staying very positive on our longer-term outlook for Anaconda.