With the calamity behind us and the market likely to settle down, we are going to see gold prices slump a little, the $A drift, and confidence return to the speculative end of the market; at least the end which is cashed up. MIL Resources (MGK.ASX) are well positioned for recovery. The company has $4mil in cash, and is just about to launch into a drilling program; at a time when gold prices are $1800/oz, and copper prices still a healthy $4/lb. Mostly they are a gold story!
With drilling starting in several weeks, expect speculative interest to return to this end of the market. We can already see this happening. The stock fell to 1.6c when risk capital evaporated, but it quickly returned, and the stock reached 2.2c on Monday before closing at 2c. Today the stock was stronger, reaching 2.2c before sustaining a sell-off due to off-screen selling. It might take a little time to regain the confidence, but I expect it to remain above the moving average.
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