RE:Stifel Nicolaus: hold rating for Colossus Minerals Inc.Thank you for the reference, but how can the NAV be $277.6 if they expect $40 million per year cash flow?
"A 200,000 ounce producer at $1400 gold at $1200 all-in cash costs means the company could potentially bring in $40 million cash flow a year. With a higher gold price, adjust accordingly. With higher production, potentially as much as 400,000+ ounces"
That would be a 7 years live time and Gold would have to stay at the average of $1400 for the period. With Gold at average $1900 we would only need a live time of 24 month to reach this "NAV" without any increase in production, with production increase we would only need a mine live time of 18 month to reach "NAV".
So I don't believe these NAV calculations at all. Any thought?