Can't believe the pricingAGE has been performing very well all year in a strong market for all the metals they produce. They are unleveraged and have added huge reserves to their holdings in the last 12 months. Their drilling success has been outstanding. La Ronde is likely to be producing for the next 15 years or so and La Ronde II, Lapa and Goldex will kick in quite soon. I would expect their metals output to rise 50% or so within 3 years.
Yet prices are dropping once again. Today they came within 40 cents of their 52 week low point. Fidelity seems to agree that they are for real and has been adding to its substantial holdings in the last quarter. When results for 2004 are announced at the end of February we will get an update on proved and probable reserves. I expect them to be heading towards 13 million ounces with the new find near La Ronde. There are not many mines of this quality in North America and sooner or later the market will agree. One thing is for sure: they were prescient in scooping up C$23 million of flow through financing at the cost of 1 million new shares in the Fall. They are unlikely to need any new cash for quite a while.