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I’m not so sure on that I mean gold was at 100, 20 years ago or so? Not sure if I misunderstood you on that though
I’m not an ultra gold bull (I tend to buy things I think are cheap vs/where they’ve lagged peers without good reason, or a reason that may be finite (!)) but I think there’s a lot of projects where sentiment has been poor for years and with a stable or rising price there are good opportunities
Investor - I agree the long term gold price is at a higher level than a year ago from the monetary action the US and others have done for Covid. I’m just disputing the proposition spouted here by some that the rise will continue on and on and that 2000+ is the new normal - I’m a believer that huge asset classes revert to the mean over time whether that be P/E ratios etc - yes there are bubbles and dips below but ultimately they go back to averages.
Essentially but it’s a small portion of the total production (+ve is right in that even one years revenue is a lot) and I actually think you can lock that in fairly close to spot as the lenders just hedge it
It’s the pure debt that there is a price deck for, the point is that the economics will be stress tested at lower gold prices, but it will be a higher low than pre Covid as almost all will have raised their long term base case (surely).
Hi ss
Apologies if I have misunderstood this - but I thought the way it worked was essentially like a forward contract that the financiers would commit to buy x amount of gold from Kefi at the 1400 strike price up to the value of their financing ( with some interest/ discounting ) So to make the maths easy if they gave $140m they would get 100k of gold? I know this is crude maths so good if someone expanded but the essential point is Kefi sell at 1400 not 2000 or whatever the price is now
But they have long term price decks and those will be being revised up for sure...
Mike- https://webcasting.brrmedia.co.uk/broadcast/5f1e93dd864c395ee4bb2a3b
34 mins it’s clear investor has taken ans place already! Done!
I think you misunderstood this is for the loan. So if gold was 1400 they would want to know how kefi plan to pay back the loan. Doesn’t mean if gold price increases kefi won’t benefit from increased profits! A bank would never lend on current gold price/ only a minimum price!
What Harry said clearly in the recent Q&A ( where he Wasn’t asked any dilution questions that I sent in) was that he was in discussions with financiers and the gold price they were discussing was around $1400 level( or £1060.) - The rise over the last couple of weeks is irrelevant in that regard as professionals don’t consider that to be the long term price of gold - I will provide the time and snippet if people disbelieve / want as the rampers don’t want you to hear it as they are spouting nonsense about a rise in recent weeks impacting that valuation. He was confident he could get it done but then again he said ANS was certain and unconditional and we all know how that panned out so I take that with a huge pinch of salt but other genuine holders might take a different view which is fine but I think handing over real hundreds of millions of cash to a minnow with their management in such a volatile time is very uncertain. What is clear in my mind is even if he does manage to get the cash in the bank ( rather than agreements/ proposals / commitments etc) it will be done at a high cost to PIs ( Harry et al Will continue with their noses firmly in the trough).
This guy is another alias of oil leak and smelly bum. You can tell them a mile away. Harry said clearly in the recent Q&A that ANS would not be getting the same %. This guy is supposed to have done months of DD yet he isn't aware of this fact. Pull the other one this is just another of the smelly oil gang. The funding will come from forward selling some golld which has gone up 25% since these negotiations started. That means Harry has to sell 25% less ozs to get the same funding. He is talking to a number of parties and knows the type of deal he wants. Gold is on fire so there will be lots of parties bidding hard for this deal. All the other stuff is just noise from the usual idiots.
Your way of writing a post and the post of asking for answers seems very much like our own smellyben ..the one you agree with..i could be wrong though