OTCQX:NTGSF - Post by User
Post by
dollardazeon Feb 18, 2019 4:01pm
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Post# 29379743
Comparing Pretium and Golden Predator Bulk Sampling Programs
Comparing Pretium and Golden Predator Bulk Sampling ProgramsNov 22, 2013 - Pretium Resources issues press release regarding their 10,000 tonne bulk sampling program at Brucejack mine.
- Over 4,000 oz processed from 8,090 tonnes of material.
- Gold closes at US$1,246.25
- Stock closes at $5.53 which is up nearly 80% on the news over previous day's close of $3.08
Dec 13, 2013 - Pretium announces that they had recovered 5,865 oz of gold from the 10,000 tonnes.
- That works out to 182 kg or 18.2 gpt
- Gold closes at US$1,232.00
- Stock closes at $5.99
- During this time, Pretium had about 101 million shares outstanding and thus a market cap over CDN$600 million.
Golden Predator is currently processing their 10,000 tonne bulk sample from 3 Aces and anticipates 20 gpt. Already a 13.26 kg dore bar has been poured from 6% of the material processed.
Here is what perplexes me.
- As of Friday, Feb 15, 2019 close, Golden Predator is valued at $0.255 per share with a market cap of CDN$33M (1/18th of what the market valued Pretium).
- Pretium's Brucejack is an underground mine and Golden Predator's site 3 Aces has the gold at near-surface.
- Golden Predator is going to process much, if not all, of the sample in-house and use the gold for production of coins and bars from their 100%-owned Yukon Mint subsidiary which will sell at above-spot pricing.
- Gold price is 7.5% higher today at US$1,326 than it was during the time of the Pretium bulk sampling news releases.
Prices would need to substantially rise to be at a similar valuation to Pretium was in 2013. If we use the fully diluted number of 144,516,957 Golden Predator shares, the share price would calculate out to $4.15 to match the Pretium valuation when they completed their bulk sampling.