Yes being a major company does not mean the costs are lower just a bit less risky with more resources and expertise to deal with issues etc. IIRC Allied had very high costs at its mines higher than ABG at the time so those mines currently must not be very profitable.
Not sure i'd personally touch AAZ with a bargepole as AIM gold miners are beyond risky. Remember Allied gold well i lost my shirt on that one as well and even though it was eventually taken over the takeover offer was cash and some almost untradable shares in an Australian firm totalling to much less than my initial stake. If the Majors of this world in the mining sector are finding it tough going the minnows will struggle even more.
Seems like sentiment is still very against gold and the miners at the moment and i have not changed my view on waiting to see how things pan out. Of course there is always a chance of being left on the sidelines but once bitten twice shy.
A lot of "what if's " in there mate ! maybe to many for me! Anyway I think the sp here will be back up above 200p in the future, but you may have to wait a while to see it! As long as you were not looking for a quick profit it should turn-out OK in the end. I have seen all these sp falls before and this one looks 'overdone"
those are all legitimate concerns. but... what if the chinese start to buy the goldminers, for example with their trillions in us bonds to cover their huge appetite for gold. what, if the physical demand is so high, that it leads to shortage? what, if they team up with the russians, who doesn't accept usd anymore for their oil and gas, but gold instead? a lot of if s. nobody knows what will happen. that's why it'a risky game. a few here are already shaken out and those who are still in take the risk and later perhaps the reward. these are hard days, bug i think a large part of this business is about hold on.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.