Gold Still Burning Cash: Miners Between A Rock And A Hard Place

Citi analysts Jon H Bergtheil, Johann Steyn, Heath R Jansen, Jatinder Goel, Michael E Flitton, Craig Irwin and Alexander Hacking provide a well-reasoned analysis of the gold market and their basis for downgrading Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) (LON:RRS), Fresnillo Plc (LON:FRES) (OTCMKTS:FNLPF) and Polyus Gold International Ltd (LON:POLG). Bearish on gold Citi’s view is that gold topped out in 2011 and is yet to climb out of its bearish depths. Furthermore, since the worst of the GFC is over and there is a global economic recovery afoot, the risk insurance component in gold value, estimated between USD 700-900/oz at…