The beaten up golds

The beaten up golds. Time for a rebound? The gold producers have just finished their September quarterly reports. The results suggest that cost-out initiatives are seeing a pull back in mining costs, but on the flip side all-in-sustaining costs realistically haven't changed for 18 months as orebodies mature and the need to re-invest capital to access more remote orebodies increases, adding significantly to the all-in-cost of production. The Australian dollar gold price pulled back by less than 8% over the last month, but equities have dropped by 30-50%, so we think at some stage investor sentiment has to catch up with reality. Our preference remains with the larger mid-tier producers including Regis Resources (RRL), Evolution Mining (EVN) and Saracen Mineral Holdings (SAR). More detail here: (VIEW LINK)