PDAC 2015: McEwen sticks to US$5,000 gold forecast
from Financial Post Rob McEwen is sticking to his guns. Despite the poor performance of the gold price the last two years, and predictions from numerous experts (including Goldman Sachs) that it will drop further, the famous gold entrepreneur maintains his long-held belief that bullion will head north instead — perhaps to US$5,000 an ounce. “I think we’re at a turning point,” the chief executive of McEwen Mining Inc. told investors in a luncheon presentation. He pulled up charts showing the explosion in the U.S. monetary base since 2008, along with rising debt relative to GDP. He also noted that a New York condo recently sold for US$95 million, while a Gauguin painting sold for almost US$300 million. “It sends a message that money is not that valuable anymore,” said Mr. McEwen, who was formerly CEO of Goldcorp Inc. McEwen Mining’s share price has been dreadful in the last year, but he said better days are ahead. Production from the El Gallo 1 mine in Mexico is expected to rise dramatically this year, and all-in sustaining costs are expected to drop 40% to US$750 an ounce. The company hopes to build a deposit next door called El Gallo 2, and is currently trying to reduce capital costs in a feasibility study. Like other gold miners, McEwen Mining is facing increasing political and economic challenges in the countries in which it operates. But at least Mr. McEwen could find some levity in it. “I’d like to say they’re all wonderful places to work,” he joked.