''Meanwhile our production continues as per our guidance which is 82,000-87,000 ounces per year. We expect to hit the top end of that and we produce gold at a very low cost of $690-740 an ounce which is our guidance for this year. We expect to hit the favourable end of that as well''
I wouldn't be surprised if they beat both.
Good to see the focus beginning to shift towards Singida now as well. An awful lot to go for there and should be the key to turn this from a small producer to a mid-tier operation. Let's hope that they use their "surplus cash flows" wisely.
The outlook here is very bright. Unfortunately whilst gold is under pressure the share price will remain under some pressure. Given yourself a 2-5 year time horizon though and I believe that the share price will be multiples of this.
I am far from an expert on these things but tend to follow technical analysts as they appear to be as good as anyone when describing gold's movements.
The Italian referendum will be interesting but, whilst many commentators seem to be writing Renzi off, I am not convinced. There are a lot of undecideds still and the lead in the last poll was only 5 percent I believe. Still, if Renzi does lose then it could throw a spanner in the works with the potential for a chain reaction within the euro zone (and everywhere else if it is bad enough). Whether the result alone will be enough to move gold forwards consistently rather than a brief rally (as we saw with a Trump victory) I don't know. Sentiment seems to be against it currently and it may need that leg lower to finally flush out the bulls.
I'm happy to bow to your far superior knowledge of the markets, Daisan. A Fibonacci retracement level is way beyond my ken and I was playing a bit of the Deil's Advocate to see what response I'd get. Let's see what the Italian referendum brings us next week. Banksman could be right if a further Ity bank collapse sets off an EU crisis.
Well, without getting too technical, $1172 is still strong support. 1180-1200 are the main areas of support but 1172 is a Fibonacci retracement level 61.8% retracement of the move higher this year. For gold this retracement has traditionally been a line in the sand. If that breaks then there is only minor support at 1150 I believe before a potential drop towards the lows you mention or even a brief dip below 1000.
For support to break it has to remain under for at least a couple of closes and, preferably, a weekly close. Dipping under and going back above is actually reasonably bullish.
Italian referendum takes place this weekend on constitutional reform. PM says he'll resign if his proposals are rejected ... sounds familiar ... Experts (there's that word again) reckon a full blown banking crisis if the government loses, sending shockwaves around the EU. Could be good for gold.
Since every prediction by so called experts have been dead wrong recently, I feel more optimistic. Gold sales firstly are seasonal, & China & India's buying season approaches. Secondly, European banks are about to go into crisis. Thirdly, SHG sells its product in dollars but reports in sterling, which means the annual results are going to be very good this year ... providing production is maintained.
I agree on the fundamentals but I have no idea on how long the COMEX market can override physical. It has done so for quite a while and the volume traded is colossal. However, if 2011 taught us anything it was that true price discovery can be realised even in an environment dominated by paper gold. I suspect all that happens is that volatility is just increased and the likely slingshot higher will be all the more dramatic as the paper shifts to the buy side.
Re the POG I look at the basic fundamentals too. We have reached 'Peak Gold'. Global production is going to begin to slide from next year and continue to slide going forward. Meanwhile exploration/new projects have slumped to a multi year low in terms of expenditure/discoveries.
For me this inevitable means, if nothing else, an increasing tightening of supply. I would then assume there would have to be a commensurate slide in demand for the gold price NOT to rise in future years. Of course the strong dollar is an important factor but history shows the gold price can rise with the dollar. And we have got the paper gold casino on the COMEX and how long that can override true price discovery?
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