Gold appears to have settled into a base with maybe one more wee pull back before continuing its march toward US$2,000 - US$16,000.
Could Queenston be one of the largest acquistions ever, all before gold takes off, if a major decides to take QMI, they should do so now to benefit from the coming POG surge.
XXX must be rapping at the Queenston door otherwise why is Agneco Eagle rounding up their loose change right now other than to try to save their investment in QMI from falling into anothers hands as it has happened in to AEM in the past. We know that AEM's mining team is pouring all over Q's $25M 2012 exploration program. AEM's intimate knowledge of Q along with modern technology makes this KL gold camp a stable platform to mine for decades to come.
Looking at the very recent past... KGI buy the 50% stake they didn't own for $60M accessing and controlling the high grade ore previously held jointly with Q. The cost per known ton was announced at $400/oz. But wait the number is actually $800/oz if you consider they only owned a half share. Q will have the proceeds of $60M in the bank come 2013 from this transaction alone.
Rubicon (RMX) is being liquidated by AEM right now because they now recognize they will never own it and AEM as we now need to bolster their portfolio with production given all the losses from the shut ins of 2011/12. RMX provides AEM with $75M cash for the warchest.
Queenston carry $75M to $90M in cash so any major coming into QMI buys $120Mish in cash January 1, 2013. This bankroll finances the operations until steady production supports the business.
AEM typically carry $150M cash. Their Goldex equipment conservatively is worth $35M and now that it is shut in what do you do with a valuable non producing asset, redeploy it. AEM also have a team of miners to keep employed until their next mine.
The possibility of an autumn 2012 AEM kick off or late Q1 2013 for a major to be in the ground at a Q site is likely.
The initial hit to a major to buy Q is offset by year end 2012 with huge dividends as the tides change and gold prices surge.
What is Q worth. Where the old benchmark was $200/oz with sub $1K gold. Todays exploration gold in 7 figure quantities sees $400/oz on the next M&A horizon given KGI's recent investment of $800/oz.
What is Q worth?
Based on $400/oz and current NI 43-101 3,700,000 oz, approximately $17.41 per share.
Based on $800/ oz and speculation $35 per share.
Based on $400/oz and updated NI 43-101 in September of 7,000,000 oz $35 per share.
Based on $400/oz and projected 20-40M oz, do the math.
Queenston must be in play, if I am one of the old guys in this play I want to see some results... the rock chipping was done decades ago, the initial proof was mined. Today AEM are rounding up cash to take advantage of their knowledge and mining skills, gold is readying to move above the old high... which major makes the play? Should AEM miss this one we can safely relegate them into a broken dream until their far north play begins to pay.
The price rises each and everyday from here...