Post by
jonggua on Jun 20, 2012 5:18pm
sector or company
The gdx etf that tracks gold miners and explorers went from 65 in September to 39 in May, that is a massacre. The tsx index that also contains most of the Canadian gold explorers is down 50%+ in 7 months. Gold majors are trading at 5x cash flow when 3x earlier in the 2000's they were trading at 25x cfps, and that with much lower gold prices and profit margins. Even hefty dividend boosts have not staunched the relentless decline of even the biggest gold miners. A large swath of the junior explorers are not gonna survive the fund raise difficulties. If we can get even a small capital raise of a few million we ought to be shortly profitable within a year and will financially survive. When the market will begin to like us and go on to reach mania phase seems many years off to me, but we won't disappear with new capital.