Replies to post #2808 on Caledonia Mining Corporation (CMCL)

[USSilverBug]

Why gold stocks are so undervalued:

"Among the 29 sell side research firms that we monitor, the consensus expectation for the forward gold price is $1270/oz. vs. the current spot price of approximately $1600/oz. Such a view has had a profound impact on valuation models such as net present value which are inherently subjective and influenced by sentiment. Should the macro forces that we have enumerated in part drive gold prices substantially higher as we expect, the mechanics of adjusting NPV models and similar constructs will impact valuations in a dynamic way to say the least."

This is an excerpt from John Hathaway which can be found here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/14_Hathaway_-_Gold,_Mining_Shares_%26_QE__2_Persistent_Questions.html