Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
With gold at all time highs in AUD terms what are your thoughts on why share prices of the likes of EVN RRL NST and even NCM are so far below highs of 2020 (>50% in some cases). In general terms do you see a return to these previously achieved levels for Aussie gold stocks or is there no longer as strong a correlation.
Hi Sean,
It is indeed a touch perplexing and frustrating as we are long gold names across our portfolios. The stocks have been trading with a “glass half empty” attitude for a long time with Newcrest (NCM) still down ~30% from its 2020 and 2010 $38-40 level, however, we remain bullish and think in this case the sector will regain their mojo when gold breaks clear of the psychological $US2,000/Oz area.
NB The bid for Newcrest (NCM) by Newmont (NEM US) suggests we are not the only people who see decent upside over the coming years.
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