Tosca a Value playI always find it interesting that ANYONE can put a specific number on a stock price, particularly when the company is in the exploration or mine development business.
I think what a person needs to do is identify whether or not a stock is over-valued, properly-valued, or indeed under-valued. There are always considerations that need be made in that value, not least of which is the amount of gold believed to be in place (call it 150,000 oz). Can it be mined in a cost effective manner (at surface, open pit ...yes!) Is it in a politically safe place, and a mining friend district? Again yes!
With Tosca and the Tin Cup deposit, which is open in all directions to further discovery, the answer has to be that this presents an undervalued opportunity. Valuation then will be based on what the gold is worth on an “in the ground, per ounce basis”. Given the above noted considerations it is not out of the question to give it a $150 an ounce value ... or $22,500,000.
HOWEVER ... that is also saying that there is 150,000 ounces, and also saying that that is ALL there is. It too is telling us that the tightly structured and low market cap pubco has no value, that the management who negotiated the property have no value, and finally that they will provide us with nothing more ... no new deals, no bigger better properties!
So is it undervalued at 40c ? Yes in my opinion by quite a bit! Am I willing to put a number on it? No, I just think that the stock price is more likely going up than down, and up in a manner that is worth my time AND my money!
Mike!