Who is selling?For the life of me I can't understand who is selling this after last night's news.
https://www.gtgoldcorp.ca/_resources/news/nr_2020_07_06.pdf -- Let's just look at page 5, because that's all that really matters.
NSR cutoff = cost to mine a block. The sensitivity shows that almost the entire resource is profitable at $15/t NSR cutoff and $25/t NSR cutoff (for open pit and underground respectively). Literally just multiply the tonnages by ($15/t - $9/t = $6/t for open pit) and ($25/t - $16/t = $9/t for underground) and you get a pre-tax undiscounted CF in the range of $3.8B.
Sure, then you can can add $1B CAPEX for a big plant and then do tax and discount it. It's still probably around 1.5B NPV5. At 0.3 NPV5 the market cap should be nearly $500M without considering the potential for exploration upside, saddle south or anything else.
Yes, that's all back of the envelope but it's really that simple.
Ok, so maybe you don't like the commodity prices they used. Maybe you think they're too high. I personally don't like that they used 3.25 copper since it just seems unrealistic. Increasing NSR cutoffs are basically equivalent to lowering the value of the blocks (lowering the commodity prices). The highest NSR cut-offs on the table are probably around what the resource would look like iif they had used 1200 Au and about spot Cu. And those resource numbers are STILL VERY GOOD!!!
There's just no reason to sell. Everyone should be buying this dip.
GLTA