No longer economicThis was everybodys top pick and was a real gem last year, now smart money has moved on after the massive pump, the pea was a shock, at 1400 gold it has an IRR of 15% which is absolutely terrible. Could not believe the 750 million CAPEX. I bought into this stock a couple years back and kicked myself hard for not getting out at 1.80 . I firmly believed yamana would take them out, but now its pretty much certain this deposit is a bust for the forseable future unless gold increases significantly.
I only hope they can come back with a smaller mine plan and smaller open pit to concentrate on the higher grade zones and reduce the CAPEX by 60%. You would think ~2g/pt open pit would be a no brainer but goes to show you, good drill results mean squat until you factor in capex.
Im not bashing, just talking reality, I have 10k into this at .80 and right now im just hoping to get my money back. Its hard to value the stock now that the deposit doesnt look as good as once thought.