NPV for Briggs = $0.75/shareBased on the Atna Briggs data, the net present value of the Briggs mine, assuming an $1100 gold price is $80.2 million US. If we subtract the $16.5 million debt, the shares are worth about
.75 each. This does not include any value for Pinson or the other properties.
https://www.atna.com/s/Briggs.asp
The market is waiting for the company to meet the production target of $9,000 - $10,000 ounces per quarter at a cash cost of $600 - $650 per ounce. Once Atna reaches this target, the share price will trend up towards the
.75 range once again. Insider selling by Anglo Pacific at
.60 per share has temporarily put a ceiling on the market for these securities. At
.47 per share, this company trades at just 62% of the Briggs mine net asset value. Enterprising investors with a patient disposition and willingness to hold the shares for 5 years should purchase at the current market price of
.47 -
.48. This is not a suitable investment for the day trader with a 2 week investment horizon. The real upside to this company is the Pinson (70% Barrick) high grade property. Barrick now has much bigger properties such as their 50% interest in Donlin Creek (total of 38 million ounces of gold). It is unlikely that Pinson will be developed by Barrick. I anticipate that over the next few years, an emerging intermediate producer will take over the Barrick interest in the Pinson property. This could be Atna or another intermediate producer. Pinson will likely be developed in a $1100 - $1200 per ounce gold price environment.