Two gold companies; Cazaly Resources and Rumble Resources

Now that the gold price has had its correction it seems to be consolidating around US$4,000/oz. Should we be looking elsewhere because gold has had its day in the sun? Absolutely not. Two points to consider; one, there is nothing to say that gold cannot move higher from here, in time. Remember the recent movements were inspired by a structural change in the value of gold. Secondly, we are now in a period of very high profitability for gold companies and this still has not been factored in for many gold companies.

Remember when gold peaked at US$800/oz in 1980? No? Well, as an old dude, I can. The gold price spent the next 10 years going lower but with regular periods of volatility that pleased traders. It was not a straight line. It still gave producers an extended period of high profitability that led to many new gold mines. Similarly, today, we will see history repeating itself with many more gold developments coming on stream that will throw off heaps of money. This is the business end for the gold sector. The bullion price doesn't have to keep rising for these companies to do very well.

This week we feature two gold companies at different stages of their gold journey. Cazaly Resources (CAZ) is an explorer that seems to have found something quite significant in an area well known for gold, north of Kalgoorlie. It is early days with the speculative upside cycle only just beginning. The other, Rumble Resources (RTR), is reinventing itself as a gold company on the path to feasibility studies on a low cost cost gold development showing solid fundamentals. The fact that it also has a world class zinc project of substantial stature is almost passè at the moment. 

 WeeklyComm8Nov2025.pdf