US$ 1,500/oz Gold Forecast, Seasonal Influences, Analytical Review of Top Senior Gold Producers and Mining Valuation Insight with Case Study Acero-Martin
New York, NY (PRWEB) November 16, 2009
Madison Avenue Research Group has published a report that includes US$ 1,500/oz gold price forecast, an analytical review of the ‘Top 10′ senior gold producers, valuation insight on junior/mid-tier miners, and valuation case study on Acero-Martin Exploration Inc. (TSX-V: AMG) (US Listing: ACERF.PK).
An abridged version of the report may be viewed free of charge at http://madisonaveresearch.com/topgold2010.htm online.
Report Categories and Excerpts:
1) Gold Forecast
Our sentiments echo John Licata, Chief Investment Strategist at the energy and metals independent research and advisory service Blue Phoenix. Last year Licata wrote a note to his clients telling them gold was going to hit $ 1200 this year – a bold prediction at the time yet stunningly accurate in retrospect. On BNN this last week Licata said he is still in the process of formulating targets for 2010 but did say he “could see gold going North of $ 1,500 next year”…
Licata cited the recent move in gold on a myriad of factors including :
Statements that came out of the G20 last weekend supporting continued stimulus; Licata said “If we keep getting more stimulus, that conversation could go from ‘deflation’ to ‘hyper inflation’ maybe towards the end of 2010 even 2011.”
Lack of support for US dollar; there is an “absence of US Treasury Secretary backing support for the US dollar” … “the administration has been so laissez faire”.
Increased unemployment, now at 10.3% in the USA ; “the unemployment picture is a barometer”, albeit a lagging indicator.
Last week when the Federal Reserve came out with their interest rate decision and is clear they are not going to raise rates any time soon, they see these low rates prolonging even longer than what they had anticipated. Licata said “it does not make sense to put your money in a stale investment” i.e. 30 year bonds and 10 year notes, intimating gold is dynamic and the smart play.
Late last week India bought 200 tonnes of gold from the IMF and that was seen by the bullion markets as very supportive.
2) Seasonal Influences on Precious Metals – Phase II; We are now in Phase II of seasonal strength, a period of seasonal strength that runs from the first week of November to the first week in February (a trade that has been profitable in 8 of the last 10 periods) for an average gain per period of 13.9%…
3) Review of Top Senior Gold Producers; Listed in ascending order of annual gold production.
4) Junior/Mid-Tier Mining Insight; Chart of index in situ valuation relative to gold price.
5) Case Study: Acero-Martin Exploration Inc. (TSX-V: AMG) (US Listing: ACERF.PK) – Presents exceptional valuation
666,000 ounces of gold and 385 million pounds of copper resource
Near term open pit mine potential
Multi-billion bulk tonnage potential
Current in-situ gold equivalent resource valuation under $ 4/oz
Only ~28M shares outstanding and trading under CDN$ 0.30
Acero-Martin Exploration Inc. is a Canadian-based mineral exploration mining company listed on the TSX Venture Exchange (ticker symbol AMG) (US Listing: ACERF.PK).
Acero-Martin possesses a NI 43-101 compliant resource estimate report completed in 2006 which yielded an Indicated Resource of 29.13 million tonnes grading 0.53 g/t gold and 0.42% copper and an Inferred Resource of 12.72 million tonnes grading 0.41 g/t gold and 0.41% copper at Pinaya. This equates to approximately 498,000 ounces of gold and 269,000,000 pounds of copper in the Indicated category, and 168,000 ounces of gold and 115,000,000 pounds of copper in the Inferred category.
NOTE: The property possesses multi-billion bulk tonnage potential and not surprisingly Acero-Martin has fielded significant interest from entities probing the possibility of purchase and/or taking on the risk of development in the last couple months. AMG.V has yet to make a decision, however we note that ~200,000 ounces gold of the 666,000 ounce gold resource is readily available for the taking from the pit area — the current valuation of AMG.V relative to the inherent value of assets appear disproportionate and is poised for substantial upside revaluation. Acero-Martin only recently (since ~mid October 2009) began trading under the symbol AMG.V as a revised mining entity with a nominal 27,347,128 shares outstanding. It is important to note the exceptional risk-reward scenario that exists withing shares of AMG.V; the 666,000 ounces of gold and 385 million pounds of copper resource was defined in 2006 and since then 93 additional holes have been drilled totaling 163 holes (representing well over 40,000m of drilling) — thus the resource estimate if done now would likely be significantly larger. Also since then gold has doubled in price significantly enhancing the value of the deposit.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.
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