RE: bada123bing and Friday's close (Aug 23/13)Gold in fact CLOSED at $1,396.00/oz U.S....a 11 week high. In Chile, ANX will also receive royalties for all production moving out of the TalTal harbour facility plus, as you mention bada123bing, milestone payments (royalties on actual production...all in perpetuity). The TSX and other reporting sites are notoriously unreliable and inaccurate with respect to their profiles and data, respecting issuers. They tend to be outdated or just plain behind in reporting up-to-date information on listed issuers. I agree, gold will hit $1400/oz by the end of August and begin to climb slowly from there on continuing poor and disappointing metrics coming out of the U.S. economic picture frame. Additionally, the C$ is hitting new lows daily now as our economy runs out of gas and debt catches up to greedy and spend-addicted Canadians. Inflation figures for Canada are total B.Sht. as real inflation is growing in leaps and bounds. Bell Canada, since obtaining its interest in MLSE has raised its residential rate 3 X since that time in just over 18 months. The raise has amounted to net 3.77$/mo each time...this is astounding as they try to push line customers off and into mobile devices and help cover the costs in purchasing the MLSE interest. Rents in Toronto, have literally skyrocketed to beyond Jupiter as greedy landlords take advantage of the surge of immigrants coming to this over-developed and poorly planned City. It is a mess as every single knook and cranny are being turned into atrocious living areas for rent to unsuspecting, uneducated newcomers who will pay any price just to get into a room of not more than 80 sq. feet. No-one, except the high earner can afford a taxi here and food for many, is something to look at only....as many can no longer stock their cupboards and fill their fridges with enough to feed families or even themselves. Food banks are no longer visited by the poor alone. The condo market is glutted and will collapse....no doubt, as foreign investors and absentee landlords speculating on the price rise of units grab up space in these sht. boxes in the sky. Few buy to actually live in because few who would...can't afford them. We are heading into creating a city where the only space affordable will be parking garages converted into apartments but without any utility connections because of the astronomical cost in getting connected.
As the C$ slides down under .94 cents we will see that holding gold as the only way to preserve value. In the U.S. the phony sales figures on residential housing released over the spring and summer ONLY represented foreign speculators and absentee landlords speculating on them and renting them out to capture price gains in value on distress sales and foreclosures. But, in reality, few buyers are buying to live in them. So it was not surprising to see the figures nosedive this week as the U.S. market in these houses has dried up of speculators much like we will see here in Toronto with the condo market.
$1200/oz gold seems to be the benchmark in terms of what an average gold producer requires to be profitable taking into account the cost of mining and the cost of operating the corporation on an all-in net basis. Therefore, these companies must have all-in costs of well under 1,000$/oz to be profitable and I believe that ANX should be back down under $1,000/oz and somewhere near $950/oz considering it has almost no interest charges outstanding on any debt except for a tiny amount on its recent loan from the Newfoundland Government and even that loan may be interest-free. This is a huge advantage as you (bada123bing) point out.
The problem is market sentiment as you also point out bada123bing. I believe that it is turning but to the majors first. Lately, the gold sector has led all others on the TSX as investors start to come back to reality and see the world economic picture more clearly. The world is now in turmoil and in a mess. This could all blow up in our faces any time as Islamic fundamentalism creeps through the world one country at a time with the Near and Middle East a literal powderkeg now.
I hope to see a return to higher gold prices by the end of this year as U.S. QE economic stimulus is continued and creates an impossible situation of catch 22. While stimulating the economy superficially; it causes inflationary pressures through the devaluation of the American currency with more and more paper issued. Stop QE and we return to 2009!