RE:RE:RE:RE:RE:RE:GradeMy calculator is blowing blue smoke here modelling a Goldstorm open pit and some sensitivities to interest rates (cost of capital) the price of gold, and mining/milling costs.
We are on different pages if you think Goldstorm to the 300 horizon won’t pay well even at $1600 gold. We don’t know the capex but there is up towards $25 billion USD of spot gold in that pit outline. That will justify plenty.
What I would agree on is the market isn’t awfully sharp on arithmetic and it may take some smart money leading the way and the price before we see fair value. We need some pros to crunch numbers and then watch the pressure to clean up some big blocks of paper for pooled and institutional funds pressing the price up.
Like others have said, these deposits are rare. Money is cheap and getting cheaper by the day. Economics 101 says the scarce asset price will rise.
But we’ll all have to wait and see. I expect building volume in the days ahead. An awful lot of money sits on the sidelines until their gurus speak.
Good luck, I dipped a bit more on TC this morning and think I got a great price.
cg