RE:RE:RE:I don't understandGoldMonger,
Thanks for your analysis. However, may I make a few points.
1. Your math is incorrect. 6.5M ounces x 100 / 241m shares = $2.70.
2. More importantly, the Company has 6.5 ounces which includes about 4.5M of inferred ounces. Those type of ounces are the least geological confidence. The Company needs to do a lot more drilling to get them into the indicated and measured category. Further, the Dolphin is a low grade deposit. So my point is that all the ounces are not worth $100 an ounce right now.
Total ounces - not pit constrained
-1.7M ounces indicated x $75= $127,500,000
-4.8M ounces inferred x $50= $240,000,000
Total $367,500,000 / 266M shares (I believe this includes all the recent PP's) = $1.38. Funny how this is about where the price range the stock trades at now.
NOW THE REALLY GOOD NEWS
1. The Cleary Hill vein and the mega interval with upcoming drill holes. This has the potential to deliver blue sky high grade ounces in the millions.
2. Worst case is a few million of higher grade will be added, the Company has the funds to convert their inferred into indicated etc. and money to update the technical studies.
3. It is probable, meaning more likely than not, they will add several milion higher grade ounces which are worth at least $100 an ounce. Maybe $150 ounce.
4. My upside price target after release of the latet drilling is as follows:
Worst case $2-3
Moderate case $4-5
Outstanding case which is possible- $5+.
I have 275,000 shares largely bought the day after the news. Thank god for the pullback. I added significantly at $0.35 and $50. I added a bit more at mid seventies. I am long.
GLTA