Keras Resources PLC (LON:KRS) Managing Director Dave Reeves caught up with DirectorsTalk to discuss the Brexit result & the positive impact this has on gold prices
Q1: Now, Brexit results came in this morning, a bit of a surprise as far as most of the markets were concerned but more importantly it’s sent gold prices shooting up. What’s your view on this Dave?
A1: Look, I think the whole world was surprised, our market was watching the count, it was open whilst the count was on in Australia and it was a wild ride until the leave votes started coming in and then yes, gold just went ballistic, stocks were dropping, it was a pretty amazing day. The ASX 200 gold producers here, so the big boys, finished up over 10%, gold price smashed through 1,800 an ounce, I think its high is 1,850 AUD an ounce which is about as high as it’s ever been I think. That’s short term, long term we’ve got years of uncertainty ahead I would imagine whilst the Brexit details are sorted out, I think for gold it’s a great place to be. Being an Australian gold we’ve got devaluation, we devalued as well, the pound hammered but the Aussie dollar also went down because of the US strength so you’ve got devaluation, you’ve gold price going up so margins increasing again and I think we’re the sole gold producer on AIM, listed in London, so not saying we like or dislike Brexit but it certainly has been good for gold.
Q2: So has does this impact Keras Resources, how will you best capitalise on this?
A2: Just produce gold as quickly as we can. As I say I do think now we’ve got a medium turn uncertainty, it’s like going back to the Greece and Italy issues on debt and the world’s going to be a volatile place and that’s only good for gold so we need to get our production ramped up as quickly as possible and just make money.
Q3: Do you think these gold prices are going to be around for long?
A3: I think they’ll be some uncertainty as I say for a few years so I think we’ll see a new base on gold that’s been higher than it has been over the last couple of years.
Q4: Finally then, did you expect this?
A4: No. I think we we’re all expecting a ‘remain’ vote, I think it’s taken a hell of a lot of people by surprise and an interesting ride from here.
Q5: But definitely a positive thing for Keras Resources?
A5: Great to be in gold positive for Keras, uncertainty maybe not be great but it’s good for gold and good for us and our shareholders.
