If I am reading your commentary correctly, Miners are worth double based on goal price difference between $2400 and $2656 (a difference of approx. $250) .
So every $250 increase in gold = 100% increase in miners.
So at $2900 they should triple in value (Up 200%) and at $3150 they should quadruple in value (Up 300%) . Wow, when the market catches a sniff of the under performance on the miners we are going to have ridiculous upside reaction in market valuations of the miners.
No, it's not exponential. We will only get a one time "catch-up" at some point for this current under-valuation. For instance, Newmont is currently valued at a 10 FCF multiple That will jump to 15 very quickly, which is a 50% jump in their share price, simply by playing catch up.
If I am reading your commentary correctly, Miners are worth double based on goal price difference between $2400 and $2656 (a difference of approx. $250) .
So every $250 increase in gold = 100% increase in miners.
So at $2900 they should triple in value (Up 200%) and at $3150 they should quadruple in value (Up 300%) . Wow, when the market catches a sniff of the under performance on the miners we are going to have ridiculous upside reaction in market valuations of the miners.
No, it's not exponential. We will only get a one time "catch-up" at some point for this current under-valuation. For instance, Newmont is currently valued at a 10 FCF multiple That will jump to 15 very quickly, which is a 50% jump in their share price, simply by playing catch up.