I know this is the fifth time I am writing about gold but with the precious metal surging to fresh new multi-year highs I need to stress to readers the enormous opportunity that is being presented to investors.
Gold continues to perform well in US dollar terms and even better in Australian Dollar terms and the backdrop to a higher gold price is only strengthening. It, along with the “yield crunch” thematic I have discussed here all year long are my two favourite broad market trends that present an enormous opportunity for investors.
Medusa Mining expects improved production and exploration upside in FY19 after commissioning the E15 server shaft at Co-O gold mine. Nevertheless, until there are some benefits to be observed from the development Citi maintains a Neutral/ High-Risk rating.
Medusa has surprised with gold production guidance upgrades of 20% for FY16 and 30% for FY17 which puts the numbers respectively 18% and 19% above the broker’s current forecasts. There is nevertheless a level of offset in higher costs.