RE:what do you think about this article? This article is a great reason why I never invest/sell any stock based on a SeekingAlpha article. That includes blue chips. We all have opinions. My problem with the article is get your facts right.
FVL had 6.5M global resoure ounces and about 3M pit constrained ounces. Those amounts are obsolete and outdated. They were from 2016 based on 1300 gold and a cutoff grade of 0.3gpt. Using $1700 gold price results in an increase in those amounts. Put that aside in any event.
The last 5 holes added a significant amount to the global resource and are outside the pit constrained resource of 3M ounces. The writer says one hole is great and the other mediocare. Not true. They add one hell of a lot of gold ounces to the global resource. You can view the results as a glass half empty or a glass half full. Out of the 5 holes, three of them hit 2-3M of 100gpt+. One of the holes was stopped in mineralization at about 400M. Not bad when a drill hole is the size of human arm and you hit very high grade 3 out of 5. You also add a monster amount of bulk tonnage gold resource. Let FVL dirll it out.
Valuation by the author? Are you kidding me. I will use very very very conservative numbers.
Forget the last 5 holes including the monster 2001 and how much more gold ouces they add. The 6.5M ounces x $35USD = 227,500,000USD or about $300M CND. WIth 330M shares o/s that is a valuation of $.69USD or about $.91CND.
Again the above is using $35USD per ounce. Also I am not counting anything from the last 5 holes which are higher than the global resourve of 0.69gpt.
Qualitative factors:
1. Blu sky her folks. These guys will be 10M ounces plus.
2. Low grade. The author makes it sound like low grade has no value. Wrong. Tell that to Kinross who is mining 0.30 gpt about 5 miles away.
I could go on, but you get the picture. GLTA.