GOLD PRICE-GOOD FOR ALL?
Gold price seems to have carved out a bottom at US$1850. 65% of analysts surveyed gave their take gold price will rise in the coming days.
It is wisely said that as far as gold producers/miners are concerned, it is not where the gold price rises to but where it settles on and holding that price for how long.
Just for discussion sake, all current producers, major or mid-tier, built their mines to be viable/profitable around a gold price of US$1200-US$1300 or less or there about.
As such, even if gold stays flat at US$1700-US$1850 for a fairly long period of time, with oil price not likely to rise too much(may even drop) from current levels going forward, these producers should be laughing to their banks!!
Obviously it is also very encouraging news for developers the like of SPA and all other mines which are in simiar stages of development. Frankly, I would like to see SPA in production asap as there is so much money to be made at an anticipated conservative gold price of US$2000+- per oz in 2021-2022.