RE:RE:Price of gold
In my view, it's sentiment that drives all of the factorrs that you mentioned. The whole idea of gold as a store of value and status is based on sentiment. But perhaps I'm breaking it down to too far a level? :)
The geared exposure is what makes this company so compelling as an investment. EDV's low AISC allows them to rake in oodles of profit while other miners struggle. The floor for price of gold is in. If it creeps lower, many miners will find their operations to be non-sustainable, thus reducing supply. Yep, Endeavour has debt, but they're in the black ~$130m per annum at current prices.
In my view, the potential upside(mid-tier low-cost producer) greatly outweighs the debt burden. At a rate of nearly half a million ounces produced per annum, every dollar increase in POG makes the company another half mil $. How can anyone not be stoked at that prospect??
It'd be the cherry on top if EDV management decide to start issuing a dividend. Neil mentioned it in April or May, I believe. I'm not sure what conditions would need to be met first, but POG I'd think would need to appreciate a little for sure.
Going back to sentiment, POG is relatively flat over the past 24 hrs, yet Canadian precious metal miners are up on aggregate 1.5% on the day. Weird how the POG has stayed put while miners have surged. Shenanigans over at the COMEX perhaps? Ssshhhhh! Be vewwy vewwy quiet. I'm....