Billion Dollar DreamingGold company valuations are not usually totally divorced from reality. Usually, there's some comparability, one company to another.
Consider Skeena with 95 million shares and a deposit that is about 5 times as rich (3.5 g/t) . Maybe 4.5 times as rich. Skeena today has a market value of $585 million.. They started the permitting process last year and is somewhat depressed in price because management is absolutely dreadful when it comes to raising money. The market knows that Skeena needs to raise $200 million equity and has stated they will do so late this year ( in the teeth of tax loss season - visions of Bruce MacLeod) or early next.
Until we get the Teasibility Study, we don't know how much money Troilus will have to raise. Back in the 2000 PEA, Capex was estimated at US$333 million. These guys are going to move 35,000 tons of rock per day. Do you think that will cost more or less than US$Half-a-Billion ??? More later.