GoGold Resources Inc T.GGD

Another slow day for GGD

[oilisswell]

Good to see the SP of GGD recovering from Wednesday. $2.75/share was ridiculous, but still some chose to dump, no doubt regrettably!

Volumes remain low. Once the interest picks up, the SP will have room to move much higher. Metal prices holding firm, war is ongoing, inflation is soaring, commodities will surely follow.

While GGD continues to prove up additional resources, the value also rises. Potential buyers following GGD will have to pay for the resource, or GGD will produce it themselves. Either way the SP will move higher. 2022/2023 is pivotal for GGD to unlock true value. How much is 500 million ounces of silver equivalent in the ground worth? Or 7 million ounces of gold equivalent?

[Bobo1962]

Very good point Oilisswell!  As it seems GGD will have approx 500 million ounces... what will it cost to get it out of the ground?  With silver at $25 would it be $15 an ounce to mine it?  Anyone on the thread have any idea ?

[oilisswell]

Brad's guesstimating ~$13/oz. BNamericas: What are your longer term aims for the assets? Langille: With Los Ricos South in production, [based on] what we have today in the PEA, we see GoGold transforming from a small producer of about 2Moz/y silver equivalent to over 10Moz/y, producing in excess of US$100mn/y in free cash flow, at very low all-in sustaining costs of around US$13/oz

[ontheroad1]

in terms of estimating a buy price, a good starting point is net asset value of the project/company. There are no economics of Los Ricos North yet, but if you want to see what an analyst has to say, refer to Brock Salier's (sprott) numbers. I Believe he has assigned a NAV of about US$1.3 billion. Obviously, the project is still growing/de risking, so it is perhaps still too early to talk

[ontheroad1]

I will throw another log on this fire: The PEA for St. Gertrudis showed an NPV of US$150 million at $1250 gold price. Agnico bought it for US$80 million cash and a $15 million royalty. US$95 million total. The offer was about .63 of the NPV of the project. Interesting to see that the sensitivity analysis showed an NPV of $225 million @$1500 gold. I would say Agnico did well. We can make the