Hi Larry.... GG in my opinion is THE Goldstock.
... best in class, best of breed, best of the best.
Certainly on any risk:reward metric it is.
Dynamic Balance Sheet - HUGE CASH, No Debt, super low cost producer, good growth and TOP management.
- what more could we ask for - other than POG to break out of resistance (vbg).
Very important to focus on Companies with low cost structures here.
It remains by far, my largest position of what is now remaining in my "core hold" position.
MDG is another very similar company with an excellent balance sheet, very low cost structure - excellent management and good prospects for growth.
NTO was mentioned earlier... great resources and this along with stocks like GRZ, KRY, even the South Africans like HMY & GFI are still very cheap on a $ per Oz of P&P Reserves basis....and you're not betting the farm on drill bit results.
Not without risk by any means... currency risk for the SA's, Political/Developmental Risk for GRZ/KRY... but, these are the types of speculative plays to add to on deep selloffs like we had in April/May....and to hold within a basket, many of them will ultimately be at multiples of their present values if we are truly in a positive longterm cycle for gold.
Here's mineweb's chart for $ per Oz of P&P Reserves:
- some are cheap for valid reasons...and will stay so; others with either development, political, or currency risk - are cheap with reasonable speculative risk and have exponential upside.
I think it's always good to keep a few cheap deep value plays in a basket.
And look what 2 Companies are at the other end of that valuation chart... GG & MDG (vbg)... the leaders.
Our goal... is to see GRZ, KRY, AUY, and even the SA's like HMY & GFI (okay... and DROOY too if it survives that long) at the other end of the list from where they now find themselves (vbg).
The VET has long banged the drum for GRZ... with good reason.
These are cheap "call" options on millions of oz's, on the LT Price Gold.
mineweb.iac.iafrica.com |
