one wonders why this trades so low. it is not super high grade but the strip ratio appears good and at a cost of less than $500 USD per oz - one would think that it will be very profitable with over 250K oz per year. payback at just under 2 years. then after payback at 250k per year, would this not be 250,000,000 profit per year? Maybe it does not work that way. Corrections anyone? I must be missing something because 250 million profit per year is a lot. When they talk of cost per oz, isn't that including salaries, equipment.....basicly all costs of the mine?
and it is in Canada......not in Africa (large portion of continent unstable and growing Islamists threat), not in South America.....who knows when they decide to take over companies at their whim.......
And with sabre rattling going on over Iran and the devastating consequences of such a war, one would think gold will jump. Oil will jump the day bombs drop and gold normally rises with oil. The USD should go down on at attack as they can ill afford another war. But perhaps some will still see the USD as a safe haven over gold. One would think gold prices could hit $3000 or more on an Iran war.
On the other hand, perhaps a devastated global economy due to an Iranian war will cause gold prices to drop well below $1000. I guess it depends on whether or not gold will be considered a flight to safety or too expensive. Unfortunately, we are likely to find out within the next six months or so.
but if gold prices hold to what it is now - am I correct (after pay back) that after costs, the company would be in profit to about 250 million per year?