Legend Pierre Lassonde told King World News that what is happening in the gold market is unprecedented.
“You got to love this market!”
August 10 (King World News) – Legend Pierre Lassonde sent the following communication from overseas after seeing the exclusive KWN video footage showing the long lines of customers at Thailand’s Gold District: Good morning! Not surprised at all to see this. When the gold price goes up to new records, recycling always hits a new high. We saw the same phenomenon in 2010/11 in the west after the 2008 crisis, people were lining up in Europe and America to sell their gold jewelry.
Gold is money and it is the currency of last resort. It works the way it’s meant to work! Think about it, so far the Gold ETFs have grown by almost 1,000 Tonnes in 7 months! This is unprecedented. If it wasn’t for recycling the gold price would be even higher.
You got to love this market!
Pierre
In case you missed it…
Remarkable Numbers
John Lewins: “Mining is a game of numbers, and let me give you the numbers for the stage 3 expansion:
Zero. That is the amount of external funding that is required to build stage 3.
$489. That is the all-in sustaining cost per ounce of gold production.
318,000. That’s the average annual gold equivalent production at the run rate.
1,000,000. That’s the tonnes we treat per year in stage 3.
$125 million. That’s our initial pre-production expansion cap.
$1.5 billion. That is the after tax NPV at a $1,500 gold price.
Those are the numbers for stage 3. And that’s what mining is about.”
Eric King: “John, those numbers are staggering. Let me give you some numbers.
$2,050 gold.
$29.50 silver.
We’ve talked cash flows in the past. What are we looking at going forward with the dramatic upside surge and the prices that we are seeing in the gold and silver markets?”
A Staggering $450 Million Of Free Cash Flow Each Year
John Lewins: “Well, if you take stage 3, and we are producing over 300,000 ounces of gold a year, and our all-in sustaining cost is below $500, at $1,500 gold we are making $1,000 an ounce. So that’s $300 million in cash flow. With the price of gold at $2,000, that becomes $450 million of free cash flow each year.”
Eric King: “What are you going to do with nearly a half a billion dollars in free cash flow?”
10 Drill Rigs On Site By The End Of The Year
John Lewins: “We currently have 7 drill rigs operating but we are going to expand that to 10 drill rigs by the end of the year. We will have more drilling results out later this month and we have so many exciting targets to drill. And to go back to that first number, zero, that’s the amount of external funding that will be required to build stage 3 because we are generating so much cash flow that we don’t need equity and we don’t need debt. We are actually making cash while we are building stage 3 and expanding to what is effectively a tier-one mine.” K92 Mining, symbol KNT in Canada and KNTNF in the US.
***To listen to the powerful audio interview where Alasdair Macleod discusses the possible collapse of the LBMA, trapped bullion bank gold shorts and much more click here or on the image below.
Man Who Correctly Predicted Silver Would Hit $30 Now Says Silver May Surge To New All-Time High By September 30, Plus Look At His Target For Gold
***ALSO JUST RELEASED: Man Who Correctly Predicted Silver Would Hit $30 Now Says Silver May Surge To New All-Time High By September 30, Plus Look At His Target For Gold CLICK HERE.
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