A bit disconcerted by the seemingly disproportionate fall in comparison to the price of gold over the last week. The most recent report was positive and urged investors to focus on the long term prospects rather than short term volatility, so maybe this is a good buying opportunity for those with good nerves, assuming gold will stay over $200?
This is what I e-mailed to a friend a couple of days ago:
"ML closed at 330p tonight - down 24p on the day! This is a miner producing 100K ounces of gold each year At a cost which is below $200/oz! And pays a dividend!!
This is a miner that has always met its targets and has under-promised and over-performed.
A miner that is promising a gold output, by 2015, of 400K ozs per annum, which will be at a forecast cost circa $350/oz. One could expect a share price of perhaps £15-20 per share by then.
The share price is LOWER than a year ago.
DOH!!
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To that, I would add:
Medusa is down over 200p from its peak of 560p a year ago. In that time it's mined circa 100,000 ozs of gold at sub $200/oz cost and has thus produced something like $145,000,000 in profits.
I can only assume that this is going to turn itself around at sometime as Medusa now seems seriously under-priced. I can only think myself lucky that I bought them at 80.5p in 2009!!
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