Wednesday, 25 September 2013

Denver gold forum wrap-up - don't give up on gold stocks

I like gold as an asset class over both the short and long-term.  Here are a few final thoughts from the Denver Gold Forum to augment my write-ups so far (link here and here). 

I have been looking forward to the Randgold presentation and it did not disappoint.  I thought there were four key slides:

The company, over the last few years, has been the only major gold producer whose share price is competitive with gold:

Why gold companies with growth and strong share prices are rare...note the increasingly poor returns from exploration budgets:

 On this front, excellent news that the company announced: the first gold from their DRC project Kibali...

...which underpins their production growth, with strong grade and cash cost control

I think a winning combination.  My last report (on their Q2 numbers) is here

In the links above, Kinross stood out for a review (this will follow in due course) and New Gold of Canada also caught my eye.  Just like Randgold, I note a share that has outperformed the gold price over recent years...
...with low cost and production growth (not shown but positive)...

...but one difference with Randgold is the location of its gold mines.  Much more 'Western' than Randgold. 
 I will be fully writing up New Gold shortly but the summary for investors would be not to give up on gold stocks.  I think value is there. 

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