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Oil Up
Gold Down always the case
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I think gold will still have a high valuation going forward. With the dollar under pressure and the US pushing out it's stimulous package i think gold will recover in price. Gold will still be in demand so will maintain a relatively high price. Either way Anza should be very profitable even if gold goes a bit lower imo. With more drilling, a resource estimate can be established and so we should get a more concrete project valuation. Going forward no doubt OMI's share will be bought out well before gold is actually mined imo and by then gold will still have a high valuation imo. Either way going forward, what ever the outcome the sp will be way more higher than now. With that in mind, it is best to just hold and let the jigsaw come together.
Gold companies will usually be very conservative on their PFS. From memory with buritica they pegged it at $1,200 for the purposes of the PFS.
Omi was profitable in 2017 when the gold price was $1,258. ($2mn profit) so with similar economics the gold price would have to suffer me hell of a drop.
Also, one of the biggest overheads for mines is the price of oil which is at very low levels and is unlikely to hit the dizzy heights from previous decades given the US producing. Surplus?
Absolutely agree it’s all dependent on grade, volume and ease of extraction of course, but even with a possible slide in current gold prices the conditions are favourable.
I think you make a good point though Sotolo -it's all about mining profitability at the end of the day.
If the gold price does fall as long as the extraction costs are economical and profitable then it's all good.
Must stress omi are a long way off mining and I'm not too sure anyway if omi will still be involved by that stage anyway.
Good serious chat in the morning...love to hear different view points to my own. It's always worth hearing about and considering the other side of the coin.
I know gold is down due to rising bond yields and hopes of a quick economic rebound but you just need to take one look at some of the over inflated prices of stocks in the market.
We have many recovered and way over shot their covid lows....to me there is a bubble that is brewing and could pop at any second.
Some stocks are performing better than they ever have and have been closed earning no income for a year. Go figure.
I'm of mind of being a little cautious when money printing and rescue packages are at an all time high. The world is not out the woods yet. Even if we get back to normality the economic fall out will be felt for years to come.
Only my opinion right enough, still think omi is a great place to be. Plenty upside and potential here.
Yes some analysts are still looking for gold to rise but more and more are forecasting further down, UBS just joined in and have lowered their forecast for gold prices this year, anticipating a $150 drop, with their analysts looking for $1700 gold by the end of September and another drop from the end of December 2021 to March 2022, taking gold to $1650 per ounce. Sadly more and more now think this downward trend will get going even further. Even Dominic Frisby of MoneyWeek normally bullish on gold, says that gold is now losing the narrative game. However as you say by the time we get to mine who knows what the price will be, however there is a long time for potential mining to become unprofitable before we start extracting gold, which is why this share is such a gamble and why many of us love it. However iti s intolerant of some permabulls here to rubbish the bears, just with insults (and vice versa tho don't see much of that) it could go either way and all voices are welcome to me, including those who have sold out, potential buyers and anyone bothered to be interested. And I don't mind the rampers, (some of who have been on this board a long time) or the shorters (fewer), as they only make noise, it is the long term price that interests me which will be affected by the discounted return of future mining affected by a combination of what we find, the cost of getting it out and how much more or less it is than the gold price then, as it is the last that pushed our last mine to loss, saw an over 100 fold fall in the share price, and ended in it closing. I have been here a sadly long time.
Goldman Sachs recent forecast @$2000oz
Gold is very fickle and often does the opposite of what all the forecasters suggest, which can be self defeating as everyone positions for that direstion. However more forecaster are calling for long term down than up now, when they all do we should turn, UBS just joined in and have lowered their forecast for gold prices this year, anticipating a $150 drop. With the analysts looking for $1700 gold by the end of September and another drop from the end of December 2021 to March 2022, taking gold to $1650 per ounce.
Surely good news. I think it's going to be important to keep the news and updates coming. As said in his last interview there should be plenty to keep the market occupied over the coming months.
Although the gold forecast near term is bearish (next 6 weeks) I think it's important to note that while Omi prove up their resources it coincides with estimates that gold will hit higher highs.
Gold Forecast over the next 1 to 3 Years are extremely bullish . Estimates of $2,660 which I have seen would be an increase of 65percent on todays price.
The perfect storm is brewing for a gold junior backed by two majors. Omi is quite very the essence of hold for gold. The resource is only going to get bigger and bigger as the price of gold climbs higher and higher.
Complete transparency with the investors, what better way to show confidence then to have a Q&A with their investors. Great stuff.
As some of us have suspected, our condensed drill programme will mean regular news and updates without the long periods of inactivity. Exciting times ahead methinks.
Exactly MEM, the previous two interviews have been well received..
Excellent news, Brad will be wearing his excited Geologists Hat, worn at a lofty angle :)
A long, detailed explanation of what we have found, what it means in Layman terms, his interpretation of what this means for the wider project, all of this info is vital.
Then he may outline how the drilling will progress.
For those reading between the lines, this is an excellent step forward.
I am excited