| For the most part, positive fundamentals (for gold mining companies) refers to rising gold prices. However, this neglects things under the surface that can affect margins as much as or more than headline prices. In the chart below, we plot gold priced in canadian dollars; gold against oil; and gold against Industrial Metals. Before we get to the chart, let me explain why these ratios are important.
First, the vast majority of gold mining firms are headquartered in Canada, with the loonie is their local currency. The Canadian gold price for firms that operate mines or explore in Canada can be more important than the USD Gold price because their costs are in Canadian Dollars and not US$’s. Thus, a weak loonie rather than a weak dollar is a benefit...............................................Full Article: Source
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