It's from a Bloomberg article. It gives us an appreciation of what the major gold producers are finding. I think it's an indication of improved financing options now available for smaller gold producers and near producers, like Century. Over the past 3 months (and a bit) the gold price has gone from US$950 to US$1,225. That's a US$275 per ounce increase. It's more than just the price increase that is significant though. There has been a number of key fundamental shifts, starting with significant buying of key central banks in emerging countries (but that's not the only fundamental shift).
In Century's case, Century has also made significant improvements to its Balance Sheet, couple with operational improvements at San Juan and made significant strides in preparing Lamaque for restart of production (with Lamaque passing stringent bank financing evaluations on every occasion). Century is still trading with heavy discounts. Given it's improved position in this gold environment, it is my view (numbers wise) that Century should not be trading below $.52 right now (regardless of what happens with the financing situation).
Here is what the Newmont CEO had to say:
Higher bullion prices may make it more difficult for the Greenwood Village, Colorado-based company to expand through acquisitions, O’Brien said.
‘Difficult Acquisition Environment’
“With the rise in gold price, a lot of the stocks have rallied, people have access to capital again,” O’Brien said. “It’s probably a more difficult acquisition environment than it was a year ago.”
Newmont will build on its existing deposits and projects while watching for “opportunistic” acquisitions, O’Brien said.
“We’re looking in places around the world where we see terrains of interest,” he said, identifying Indonesia, Australia, Alaska and the Arctic and “challenging” political areas.
“We’re up for the challenge, we just have to find the right discoveries,” O’Brien said.
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