Loading ...The BEST Gold Stock is falling, does anyone have any idea how low?
I’ve been following Kirkland for years, wishing I had listened to my gut instead of my brain and bought into it long ago. But now its stumbling, even with record profits and a glorious future.
Anyone have any clue how low it will go?
Lot of good discussion on Fintwit but basically the fosterville mine exploration program for 2019 did not delineate any significant gold findings and fosterville and without that, mine life is going to be shorter and possible also the reason for the recent purchase. Mark IKN of Otto Rock also discusses it on his blog.
It has had a hell of a run of late. I just think it is taking a breather. Although scary on the chart none the less.
~30 and then ~22 look like good stopping points were it to go lower. I’m no great chartist, but by eyeballing it that’s where horizontal support/resistance/congestion appears.
We do not know whether it falls more or not. AEM and NGD have been slowly moving upwards since their recent hits. However I think that is a solid company AEM with only minimally disappointing news, and half the world was expecting the worst out of NGD which was a known mess.
In contrast KL has suddenly gone from a magical wonder company that could do no wrong to having one of its 2 star mines, an apparent miracle high grade mine (Fosterville) supposedly one that was going to last for a long time, suddenly look as if it is going to get depleted in the fairly near future. Moreover, KL recently bought a new mine (Detour) in a controversial move that will work extremely well only with a big increase in the gold price or some improvements at the mine (discoveries or efficiences).
So AEM and NGD are perhaps recovering from hits that for different reasons were too hard. With KL maybe more’s to come since it was the wonder stock and now truly bad news on top of an acquisition that may be tough to digest gracefully.
At the most likely worst though, it has a great remaining mine in Macassa, it will do ok with Detour and it may or may not find something else in Australia, where it is looking. To my entirely amateurish guessing mind that means it goes back to the way it was a couple of years ago but with a higher gold price. That means I’d guess a lower limit of 20 under the worst reasonable scenarios and much much higher if something works out well somewhere or the gold price moves up. Probably somewhere between here and 30.
I wonder what other people think. I’m just guessing. I haven’t even read their news release–just Otto’s sum!