RE:Quite undervaluedftj1408 wrote: I added to my position at 31,6 USD. We're down 31,5% from the close prior to the detour merger announcement. Taking the detour valuation as well on 25th of november, we are down 28% in combined market cap. Meanwhile gold is still up 8% since and we had the best kirkland results ever. And we still have our 707 million dollar pile of cash sitting there, becomong a substantially larger portion of the company valuation as price declines. The only way this valuation makes sense is if you reason that fosterville will not increase reserves at all and they'll just scoop up 2,1 million ounces there with a total profit of 2,7 billion and close up shop. In that case we'd have 0.7 billion in cash, 2,7 billion in fosterville profits and the rest would then be worth 5,8 billion. Detour was already valued at almost 3 billion when gold was 8% lower thus given their high leverage to gold price, i'm just going to lowball and give them a valuation of 3,5 billion. So what remains is 2,3 billion USD of value for Macassa, Holt, Robbins Hill, synergie benefits between detour and macassa operations, the investments in Osisko, Bonterra, Novo amongst others AND any upside potential to fosterville. I think the market is being irrational and we'll be in the 40's in no time. There is no long term downside risk to this stock at current gold prices.
Good analysis. Cooler heads will prevail.