OTCQX:BGMZF - Post by User
Post by
RedHorizonon Jan 15, 2013 11:57am
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Post# 20840181
Galway Vs. Aurizon
Galway Vs. Aurizon I don't know why we would use the ARZ bid to value BGM. Galway is far more comparable. Galway has a high grade open pittable deposit in Columbia. They have an average of 5.5 grams/ton in their California project. Cow Mountain is around 4g/ton. Aurizon is primarily an underground mining situation and of very average grade, not similar to Cow Mountain.
Galway's California project was separated from their other 2 projects and was acquired for consideration of about $300 million by itself. California had a measly 425 thousand ounces in the indicated category and just over 1 million total if you add in the inferred. They have world class grade but not world class size. I believe Cow Mountain will have both.
The acquisition value of California's ounces was about $270 per ounce and that includes the inferred ounces. I encourage you all to review the Galway presentation which describes the details of the AUX takeover.
I am compelled to conclude that Ian Gordon's valuation numbers shown in his latest "Longwave" newsletter are not aggressive. Merely an accurate reflection of what major miners will pay for high grade deposits. Additionally I have to believe Cow Mountain's world class size is worth some kind of a premium. Aurizon has no relevance to BGM.
GLTA Longs other than Rex Harbour and company.