Dear Reader,

Right now, the Australian gold mining industry is going through some major changes as companies look to beef up their mine portfolios.

Mining costs are rising. This could continue as the price of oil has doubled since late last year.

However, based on my analysis, the companies are generally in better shape than ever.

Part of the reason gold stocks underperformed over the last year was that this type of consolidation period was going on as the gold companies jostled for assets and streamlined their costs as much as possible. The price of gold cooled too in the US.

However, think of the long term. Gold companies can now sweat their assets at very good margins with Aussie dollar gold at around $2,350.

My analysis says the upcoming three-month period is, historically at least, very bullish for gold stocks usually on the ASX.

And that 20% decline over the last financial year?

I call that a discount.

I’m buying. The question…are you?

More details here.

Regards,

Brian Chu,
Editor, Rock Stock Insider