Current ValuationWith the issuance of the shares for the MOZ acquisition and the $100 million financing bringing CXB's total o/s shares to almost 786 million, the company now has a market cap of just under $1.4 billion at a current share price of $1.78. That is with close to $300 million in cash on hand.
Compare this to G Mining Ventures (GMIN) with its first mine under construction in Brazil that is expected to produce 175,000 oz/yr over a 10.5 year mine life. Similar to Valentine but about one year closer to production. It has lower AISC costs, but Valentine has more reserves, longer mine life and higher annual production and in a safer jurisdiction.
GMIN currently has a market cap of over $1 billion.
How much of Valentine's value is included in CXB's market cap? Not much it seems.
In a little over a year from now, CXB will be producing 500,000 oz/yr with a margin at today's gold proce of more than US$1,000/oz. That's US$500 million per year in cash flow. GMIN will be generating less than $300 million in cash flow even if its AISC is less than the suspect estimate of less than $700.
Analysts that rate CXB as a "hold" don't have a clue, IMO.