Report Cover Page

Contents

Where are we in the Cycle?
The latest OECD leading indicators are pointing to a continuing loss of worldwide growth momentum while falling bond prices have contributed to lower gold prices. More...

Market Directions
Talk of greater inflation tolerance by central banks helped push US bond yields higher. The resulting higher US dollar exchange rate has placed downward pressure on metal prices. More...

Portfolio Performance and Positioning
Share price movements during the week have been relatively modest. Portfolio changes have reflected a reorientation toward higher quality Phase I companies for their exploration potential in the continuing absence of sufficiently high quality development ventures. More...

Stock Reviews and Rating Analysis
Excelsior Gold (EXG:AU) was identified by the PortfolioDirect gold stock valuation model as being the most overpriced among the universe of 25 companies being valued and has been removed from the equity model. Subsequently, the company’s new slate of directors indicated that the advantages their predecessors had claimed to have derived from an agreement with Norton Gold Fields had not transpired with payment delays and potentially less advantageous access to milling capacity. The company has also confirmed that recoveries from its current ore sources have fallen short of expectations based on earlier resource modelling.
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