Its a long long year!! Gold prices are on our side. Been up 12 straight years YOY. Closed at 1675 in 2012, gold prices in all likelihood will spike before this year is over. In the long term, if you look at companies with 5 billion market cap they are producing over 600K AuEq, Mux is presently on pace for 300K, we are almost half way there. Basically our only chance to get over 600K and get into the SP 500 is by acquisition . We need two more drilling seasons to advance the Los Azules project to premium value levels, likely over a billion dollars. Thats when the aquisitions will occurr. This is a challenge but it is very feasibile.
The real on going risk has always been cost inflation, which results in companies having a hard time generating free cash for normal operations. This is the PROBLEM in this sector as right now. The recent down trend of our SP is reducing our options for funding EL GAllO and I hope Rob will not be pressed to sell Los Azules, especially at a price less then it is worth. Barclays prediction for this years gold price range is 1540 to 1900. Again, its a long year, I would embrace the volatility. The fundamentals are strong, especially with a copper deposit that reasonably could be worth 1 billion dollars 2 years from now and gold prices spiking once again. Im not too concerned about nationalism, but increases in royalities and taxes, which can be considered a form of nationalism, is a given and eventually will be part of the equation