Historically, Australian gold stocks have traded at a discount to their North American peers. It’s been an odd phenomenon considering Australia is a safe, mining-friendly jurisdiction with a currency like Canada’s.
I have written extensively over the last 12 months about the Commonwealth takeover.
I’ve explained before how the Australian miners, buoyed by a weak Australian dollar and mining-friendly regulations, have been cash flow machines for the last 12 months.
Now these Australian miners are sitting on big cash positions and high share prices.
And when you’ve got a lot of cash and a high share price, it’s time to go shopping for a new asset.
So let’s take a look at who wants to go shopping…
Big Gold Producers and the Australian Interest
The chart below shows the production profiles for the world’s major gold producers.