RE:RE:RE:RE:RE:RE:Short term down but very good for longer... For those who are
really interested, here is a link to the PEA from 2014, prepared for Santa Fe Gold Corp, who owned the mine back then:
https://www.miningdataonline.com/reports/SUMMIT_PEA_2014.pdf They estimated Net Project Value (10% discount) at $51.7M, but that was at a gold price of 1200 and silver price of 20. For every $100 increase in gold price, NPV changes with a bit more than $10M.
However, Santa Fe had a tax-loss position which meant that they wouldn't have to pay any income taxes. On the other hand, Santa Fe would also need to pay substantial NSR royalties (the largest one at 5%), and Galane's PR doesn't mention that, so maybe the NSRs have been settled by Pyramid Peak (whom I suppose bought the mine from Santa Fe). Santa Fe suspended operations in 2013 due to a corporate reorganisation.
The PEA also recommends further drilling to upgrade the resource. Currently it is mostly in the Inferred category, so that adds some uncertainty. And the PEA also states that other mineralization occurs adjacent to and in close proximity to the identified Mineral Resources, so I guess there is potential for more. As I've said before, I don't think Galane would have bought it unless they saw potential beyond 6 years of mining.
I've just skimmed parts of the report, but to me it seems like Galane got the mine at a very good price.