RE: China recommenced Gold buying - bodes well for PoG.9 Dec 2024 09:05
Morning.
It bodes well because the current Gold price is fully 40% above the price used to derive the Cascabel NPV in the PFS - likewise the Silver.
Copper is indeed the main resource here but that's also 10% above the PFS number (+2% today as I type).
These numbers matter because ordinarily, I would expect this to see 4s but the fire sale value of Cascabel, even at FPS numbers is far in excess of the current mcap and much more than that given the current prices of those three minerals and their outlook going forward, especially in 2025.
I suspect the market can see that and the elastic band between the floor here and the widely-known firesale price based on today's numbers can't be stretched any further.
Let's see what happens through Q1 - like all other junior but big resource plays ...