The feasibility study, which places a NPV of $2.2B on the Brucejack project, uses a gold price of $1,100 and a USD/CAD exchange of $0.92. Since most of the costs of developing and operating the mine will be in Canadian dollars, its interesting to note that the equivalent CAD gold price used in the study is USD1,100/0.92 = CAD1,196. Even after the latest carnage in the gold market, the CAD price of gold is well over $1,400. That suggests better margins than contemplated in the study.
It doesn't make sense for Goldcorp to hold TAHO, now a producing miner that they do not have controlling interest in. I don't think it means they think it's not a good investment. Broker's unsold shares have created additional downward pressure though.
I agree, but we have been doing this for thousands of years, through many a "New Economy".
And it makes no less sense than the Fed buying gov't treasuries with newly minted money, effectively taking money from one pocket and putting it in the other.