Comparable companies Hey guys, looking at companies to try and compare our situation a little bit. is anyone familiar with Torex gold? I used to own this comany and it has maintained it's shareprice through the year as everything else has dropped. Anyway, they have a 1.26billion market cap vs. our 152million, they just did a big financing at $2, they have 5 million ounces M&I vs our 12-14, the cash costs are low around $421 (estimated), vs ours at 1100, and they are in Mexico with NO production until 2014/2015. Now, how come GCM which has 100k on track for 150-200k ounces, 12-14mm ounces M&I on the backburner, and a financing about to close sitting at 30 cents and $150mm market cap comapred to this one?
I get the cash cost side of it, but if we took away every asset we have except Marmato and compared it to Torex's Morelos mine they are planning to build, I think we would be comparing very similar projects. Obviously one is Mexico, one is Colombia but I wonder where the extra $1.1 billion of market value is coming from on that project that GCM does not have, not to mention all the other assets that are actually producing. Maybe they don't believe in management? Maybe they don't like the prospects of getting Marmato online and permitted? Maybe it's being held down ?
I'll have to look at the cost/production/capex numbers another time between these two projects, but I think it's a fair apples to apples comparison if you strip away everything else. Either way, big descrepancy and GCM is getting no respect.