OTCQX:BGMZF - Post by User
Comment by
RedHorizonon Jan 16, 2013 11:48am
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Post# 20845170
RE: RE: I urge the Pumpers on!!!n
RE: RE: I urge the Pumpers on!!!n Dosco and Cobalt:
I did a post a few pages back where I talked about Galway as being the appropriate comparable. Galway is expected to be a high grade open pit mine in Columbia. They have a mediocre 425-450,000 ounces in indicated and another 750,000 in inferred categories. They are being taken over for $270 per ounce. That valuation is for both the indicated and the inferred. Inferred ounces are also being valued at $270/ounce in this deal, I encourage everyone to review Galway's presentation which is still available. See slide number 5 especially.
https://www.galwayresources.com/i/pdf/Presentation.pdf
This $30/ounce nonsense is for marginally economic ounces with massive capex and a long way from production. Cow Mountain is high grade and its local infrastructure + Goldstream mill makes it closer to production and lower capex than many other plays. Plus BGM's exploration potential is better than Galway's and Canada is safer than Columbia. Seems like IG's $300-$400/ounce is more realistic.
And consider this: TMM is producing .6g/ton material in an open pit with a cash cst of about $780 or so. What kind of cash cost could Cow produce at if we have 6-7 times the average grade of Timmins?
Cheers