Andrew I don't think anything can help gold except some big industrial application. In the past it probably would have. There is just so much gold and a lot more being produced cheaply with heap leaching, as I am sure you are aware. And people don't use it as a flight to quality like they used to. They just change economies.
With regard to a mine for PFN, you tell me, at say 2 grams per ton, open pit what do you think it will cost to produce? I think Claude guesssed $300 to $350 per oz. That looks like a pretty good profit to me. Right now some have guessed at least 10 million tons.
It seems to me that would justify a $2.50 share price right now with no speculation on what else is there. Some have guessed in excess of 100,000,000 tons ultimately, which seems possible, so extrapolating that share price increase would be easy.
I think you are wrong about the PGM's dropping back down in price very much, unless they find a substitue for PGM's in catalytic converters. What would cause that drop. Right now I think the PGM's are actually drawing money away from gold and silver. Silver may still have its day someday.
Besides, the PGM's are becoming radical chic for jewlery.
How is the new demand being met, where are the new supplies, reserves, overhangs, come from?
On top of all of that, you havee 2 ways to win here (PFN-Sudbury) discoveries can be made and/or the price of PGM's can rise even higher. I still think there is a very good chance we will see both PT and PD in excess of $1,000 per oz - what does that 2 grams per ton open pit look like now <g>?
Many say the price of PGM's will drop dramatically, specifically what would cause this drop?
This is all just idle sunday morning musings - who knows <g>? |
