RE: Continuing research. The suggestions that I have received are insightful and do add much to the discussion to the valuation of GCU.
As everyone is in agreement that we are no longer an exploration company, and that we are now a development company, I will focus exclusively on that area of valuation.
If we decide to go into production, I will revisit valuations for near term producers.
I will say that with the resume of the new CEO, the company is putting together a team that is highly qualified to move the springpole project into production.
By having such a team in place, the company can move forward with the delineation of the resource, the PEA, and permitting; while being open to a fair buyout offer at any time.
The top places that people have suggested that additional value should be given to GCU are in no particular order:
The country risk: Canada has low country risk.
The distance to services and work force. Red Lake is only
The topography of the property: GCU isn't on the side of a mountain.
That Springpole will be an open pit mine so that lowers costs.
There is very little overburden: We get to start processing ore and selling ounces quickly with little cost.
The metallurgy is very favorable to low cost processing technologies.
The company has a strong well informed investor base.
Part of the deposit is under a pond.
Once we reach the 5 million ounce threshold, major mining companies will take increased interest in GCU.
The ability to raise funds and fund the company.
So those are the areas that people have suggested.
I'll close this post with that list. My next post will start to discuss the specifics of how these factors effect the valuation of GCU and adjust my valuation model as warranted.
I will say that the sum total of all of these considerations are baked into the cake that is the stock price of GCU based on a couple of external factors.
Market Risk- The general direction of the market
Gold/Silver price risk- The general price of G & S.
Funding risk- The ability of the Financial sector to fund any project. We saw funding dry up in 2008 as the financial crisis unfolded.
Scout