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That Q1 26 avg gold price was $4,950? $825 higher than Q4 25? That’s 20% higher QoQ.
It’s a 74% increase YOY for Q1 25 for gold prices.
Margins expanded for most majors to $3,250 per ounce in Q1 26?
OK, gold stocks are down 17% from the Feb high of 117.18 on the GDX.
Avg gold price up 20% QoQ, margins are leveraged, GDX down 17% from high? Do you see an opportunity?
Producers will continue to print money, pay down debt, increase cash balances, buy back shares, increase dividends, and buy resources from explorers. Not that you should look at PE’s on miners, but PE’s will continue to drop on these companies making them a value play…..free cash flows will increase as will cash flow multiples.
Absolute Cash Cows that have not (yet) been recognized as such by the marketplace.
It feels like investors are just assuming that the government will drop a hammer on the industry — so they are just watching from the sidelines.
Profit margins at $4,950/oz are outrageous — heck the profit margin @ $4,000/oz is still outrageous — the industry doesn’t need $8,000/oz because it’s ALREADY a golden goose (but we will of course take the impact on the bottom line).