ValuationsGBB Valuation Comparables:
Gold Companies With Resource Estimates in Past 6 Months
TRR - Reached market cap of $630 million based on Resource Estimate of 4.2 Moz gold Inferred at Cote Lake Deposit. That’s a valuation of $150/oz gold in Ontario. Now trading at $580~ million market cap.
Share Price April 1st 2010: $1.14
Share Price Now: $4.74
ORE - Reached market cap of $184 million based on 1.6 Moz Indicated and 1.9 Moz inferred in at their Bombore Deposit in Burkina Faso. That’s a valuation of $53/oz gold which was cheap at the time since their market cap has responded trading now at a market cap of $400 million or closer to $115/oz gold based on reserves.
Share Price : April 1st 2010:
.70
Share Price Now: $4.68
RVC - Reached market cap of $200 million based on 1.8 Moz Indicated and 2.35 Moz Inferred at their Blackwater Deposit in British Columbia. Since they have reached a market cap of $318 million or $78/ounce of gold.
Share Price April 1st 2010: $1.73
Share Price Now: $7.20
While these aren't apple to apple comparisons what can be seen from these three companies is that within 3 months of receiving their Resource Estimates and actual PROOF of what's in the ground from the 43-101 their valuations went up over 300% and the companies are now valued at an average of $114/oz of gold in mining jurisdictions as favourable if not less favourable than ours. Each of these companies has grades similar to ours with deposits between 3 to 4.5 Moz which is comparable to our size as a junior potential takeover target. Right now at
.425 cents we're receiving a market cap of $67 million dollars and based on my belief of our 43-101 coming up with no less than 3.2 Moz Inferred with Phase 3 drilling including we are being valued at under $21/oz of gold. The EXACT same gold that TRR is being valued for over $120/oz INFERRED for right now one province away in Chester, Ontario.
If shareholders in these companies told you your shares would be worth 5 X in less than a year you wouldn't have believed them but companies without "exciting" drill results lack catalysts for the share price except Resource Estimates or PEA's therefore they basically go unnoticed until they have a definitive label on the ounces in the ground. With the tonnage we have and over 50,000 metres of drilling + another 30,000 metres historical we will have no problem coming up with 3 Million ounces at Granada for the 43-101 and should receive a fairer market valuation of closer to $65/oz in my opinion or a minimum $1.23 a share come July. Some people may be thinking this is a Golden Hope and a complete pump and dump but the past 9 months illustrates a chart of strength and with the last drill results the MM's were finally able to shake weak hands out and truly put a damper on the share price as well as provide some overhead resistance to give them time to accumulate. Golden Hope has no intervals over 100 m or nothing of any value and if they were to try and release a 43-101 at this point based on dril results would come up with 0.5 Moz of gold at most. This is much different than GBB which has actually put the drills in the ground and has drilled over 25 100 metre + intervals which will only contribute to tonnage for the 43-101. Plus people seem to forget at this share price you're essentially getting 3 Moz of gold in Quebec + a Silver play for free with silver at all time highs. You can continue to give away your shares at these prices but you're only making the MM's job easier by keeping the price here and letting others believe this is a fair market valuation for GBB. We know where this stock belongs and longs will be rewarded. You'll only pay more for shares once GBB announces they're step-out drilling at the Aukeko Shaft with historical results averaging 7 ozs per ton/au.