RE:leveraged gold playYou can have you opinion on Dividends and I will have mine. I guess Ross Beaty didn't understand Dividends as well when he said they may pay dividends this year.
Gold has hit the $1,830 area 9 times on the way up or down in the last year or so and has always come back down. I'll say it again.....THE US GOVERNMENT WILL DO WHATEVER THEY WANT OR DECIDE, TO KEEP THE PRICE OF GOLD DOWN BECAUSE IT TELLS THE WORLD THAT THE US DOLLAR AS THE WORLDS RESERVE CURRENCY IS IN TROUBLE.
Now the fact of the matter is .... it is in huge trouble. However I for one wouldn't be surprised at all to see the the price of gold get knocked back to $1,810 in the next few days. However, sometime in the near future the US Government will lose the power to knock gold down because demand will be huge.
Let me assume the following: Gold stays around $1,825 an ounce for a while. EQX lowers their AISC to $945 an ounce for 2022. They produce or expect to produce 745,000 ounces this year. If I convert to Canadian Dollars their Net after AISC will be around $785,000,000.00 CDN. Dollars. Do you think they could afford to pay their shareholders approximately 5% of this number or $40,000,000.00 (.13 cents a share) AS A DIVIDEND? DO YOU THINK THEY COULD AFFORD TO PAY EVEN MORE? I for one still believe that before the end of this year they will pay dividends.
Now maybe gold does move up to $1,900.00 an ounce this year. This makes an even better case for dividends.
One thing I know for sure is that nothing has made sense the last 2 years in the markets. With high inflation, super high debt levels, all time housing price highs, all time highs in medical costs etc. etc. and gold isn't at $2,200 or more!!!
We are around $9.39\share as I write this. Some of the shorts would have covered on the way up. They will start shorting again very soon as EQX has moved up on a percentage basis quite a bit more than the average of the seniors. I HOPE I'M WRONG AND IF THERE IS STILL A LARGE SHORT POSITION, LIKE GOLDENS SAID I ALSO HOPE THEY GO THROUGH SOME PAIN.