The price dropped from $1800 down to $1100 because miners increased output and the scrap gold market exploded leading to massive oversupply. Over the last few years the market has tightened again hence the price increase
I disagree personally, I don't buy into the conspiracy theories.
Gold is probably at fair value at the moment - if it goes much higher and stays there then a lot of resources with are not economic at say $1200 will get the finance needed to be extracted and in a few years time prices will crash
The same thing happened when gold spiked up to $1800 which caused the drop down to $1200
Why would anyone want to manipulate the price of gold? Of course bank trading desks will push the price around a bit as they do for all assets but there is no conspiracy there just trading desks doing what they do in my opinion...
Sirius mining as a company is finished I expect, any potential buyer will need to raise there own finance facility and will most likely clear out the current board etc. If they can't or consider this too high risk then it's toast...
I don't think that is that likely though, the likes of JPM will have done due diligence before offering 2.5 billion in my view
I am not heavily invested here and my average is 3.3p so I can afford to be objective.
My opinion as follows;
They need approx 500 million in new equity to get access to the required lending facility. (Assuming that JPM are still willing to provide) Any investor will demand a controlling interest say 55% If we assume 55% for £500 million then the remaining 45% should be valued at around 400 million or approximately 6p a share