‘When things are going downhill, and you’re getting squeezed, everybody has a bunker mentality’
If the price of gold hits an all-time in the Canadian dollar, does anyone notice?
A little after midnight on Tuesday morning, intraday gold spot prices soared to $1,895.20 per ounce — higher than any previous closing price, according to Bloomberg data. Yet hours later, many Canadian gold companies, big and small, were trading down.
“People don’t look at gold in Canadian dollar terms,” said Bruce McLeod, chief executive of Vancouver-based Sabina Gold & Silver Corp., which is struggling to raise funds to build a mine in western Nunavut. “They don’t look at what’s actually happening.”
“The frustrating part is you have an economic project that’s permitted and nobody cares,” McLeod added.
His company’s stock was trading down 2.16 per cent on Tuesday to $1.36 as he seeks to raise around US$500 million to build a mine, which would produce 240,000 ounces of gold each year for about a decade. Yet even McLeod acknowledged some cause for optimism.
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