News

March 19, 2009

Gold And Sterling Are Moving In Perfect Harmony For Galantas Gold At The Moment

By Alastair Ford

Just for fun - or, if we must add a dash of gravitas, then let's say for illustrative purposes - imagine a world where gold hits US$1,500 an ounce and the dollar moves to US$1.20 to the pound. It might perhaps be best to avoid thinking too much about what such a scenario would be like for the global population at large. “Yikes!” might sum up the general reaction. It wouldn’t be that bad for British exports, though. Or the British tourism industry. And it also wouldn’t be that bad for one small UK miner. In fact, it would spell bumper cash flows.

The company in question is of course Galantas Gold, which by steady increments has been increasing output from its Omagh gold mine in Northern Ireland. As part of a more wide-ranging conversation, Minesite spent an enjoyable couple of minutes on the phone to Roland Phelps, the chairman of Galantas, toying with the various implications of the above gold price and currency scenario. The conclusion, or one of them, was that although such a scenario is undoubtedly towards the very end of the...