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Bullboard - Stock Discussion Forum Allied Nevada Gold Corp ANV

NYSEAM:ANV - Post Discussion

Allied Nevada Gold Corp > What ANV Needs Most Is A Higher POG
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Post by goldguy007 on Jun 05, 2014 2:12pm

What ANV Needs Most Is A Higher POG

What ANV needs most is the price of gold above $1325 per oz.

This chart shows the performance since Dec really took off when the POG was above $1325 and faltered when below that.

https://stockcharts.com/h-sc/ui?s=ANV&p=D&yr=0&mn=6&dy=0&id=p65380245039

The entire gold miners sector is somewhat similar as shown by the GDX chart.

https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=6&dy=0&id=p45049005425

Above $1325 this index related ETF soared and below that price it has faltered.

While most miners are trying very hard to reduce costs, it is an unfortunate reality that the costs related to mining have skyrocketed in the last few years and the only thing that will help is a higher POG.
That may seem elementary but it is non the less critical.

Below is from the presentation for Hycroft and it is obvious how greatly the value of the mine depends on the POG.

goldguy

From footnotes

All costs are on a go-forward basis and consider capital spent to date as sunk costs.

Net Present Value (“NPV”) and Internal Rate of Return (“IRR”) are calculated using $1,300 per gold ounce and $21.67 per silver ounce and additional assumptions set forth in the table titled “Economic Model Assumptions” on slide 29 of this presentation.

No assurance or guarantee is provided that the calculated IRR or NPV values will be achieved.

Actual results may differ materially.

Page 29 shows that the NPV and IRR are dramatically higher at $1400 gold and $23.33 silver.

https://www.alliednevada.com/investors/pdf/140521-Hycroft-Mill-Expansion-Prefeasibility-Update.pdf

Comment by vestor111 on Jun 07, 2014 8:51pm
Alex I will take Gold for $1500. 
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