Against the backdrop of a strongly performing gold price over the past three years – which has seen the price rise to an all time high in nominal terms of just over US$ 1,400 per ounce – gold shares have continued to perform well. Ord Minnett Ltd (OML) forecasts that the gold price will remain firm but volatile over the next few years, principally from its role as a store of wealth and increasingly preferred alternative to paper currencies and especially the weakened US dollar.
Focus Minerals Limited (Focus) operates gold mines in the famous historical gold district of Coolgardie in WA where the company has built up the largest ground holding and embarked on a program of renewal and expansion that OML forecasts will lift annual output towards 130,000 ounces over the course of 2011.
