RE:RE:RE:RE:RE:RE:RE:RE:RE:One step up, two steps downI am of the opinion that for the time being it matters not what the Company does. The fact is that they are being lumped together with all other gold equities. Gold mining is, and will continue to be, an out of favour sector with the market until, all of a sudden, it isn't.
I expect that something in 2024/25 will change the sentiment and it will lead to a convincing breakout of gold prices to the upside ( $2500-$3000). The only question is, will it be after the start of the next Recession when the US Fed is forced to open the monetary spigots or before ( because they have somehow engineered a soft landing in the economy and need to return to low rates - in order to ease the burden of high interest rates against the backdrop of massively over indebted Governments, zombie companies and individuals).
Gold has more or less been on a steady incline in price, so why aren't we seeing a return to interest in investing in the mining sector? The answer is squirrels ... like the Big 7 tech cos, AI, Bitcoin, etc. and now there appears to be a momentary illogical melt up in all other sectors ( except resources) .
As frustrating as the wait is for gold equity holders, logic will be thrown out the window once again when investors inevitably rush out of all others sectors and then back into unprintable scarce resources like the gold equity sector. This will be regardless of dividend policy, buybacks, gold in the ground, country risk, AISC, profitability, etc.
Sadly the most likely scenario is a Recession in which all equities including gold equities will get hit hard. Gold equities will languish ( and perhaps decline further) at first, but like in 2008, they will be the first ones to recover, and recover with a bang.
Just my prediction. This time however I hope that I am smart enough to ride the next gold wave upwards and bail when the average Joe is suggesting that I should put my $ into gold miners.
Its coming just as sure as you were born.
MM