RE: RE: Gold Comparison Table Now Available for GM >Along with our current rather large cash resources, GMN will have over $2 per share in hard cash.<
That should result in a double in the share price. While flipping mineral deposits for a good profit is low risk, I prefer juniors with advanced gold assets that they can take into production themselves, since there is much much more than a 2x upside with gold set to go into the $2000+ range this year. For example, another company mentioned in the table is axmin (axm.v) which has a low cost superb 3+ million oz open pittable gold deposit in Africa with a BFS and updated BFS completed. They are just 2-3 months away from closing on $185 million debt financing which covers around 2/3rds of the capex needed to build a 200,000 oz per year mine. This gold deposit is one of several expected to be found on their 140km long property in Central African Republic. The people involved have excellent track records. The biggest shareholder with 25% stake is the Addax & Oryx group which previous built up Addax Petroleum and sold it for billions to the chinese. Also the ceo George Roach was one of the founders of Uramin which also got sold for billions to Areva:
Patience and perseverance set to pay-off for Axmin?
2012-01-26
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Trying to build a gold mine in a sub-Saharan African country that has never had a modern mine is never an easy task. But the process seems to have been particularly arduous on Axmin (AXM-V).
There is little debate in mining circles about the quality of the
company's flagship project. Passendro is well defined gold project that has been subjected to the rigors of both a feasibility study and an updated feasibility study.
But the sound economics and geological potential of the project have been overshadowed in years past by its location. The project sits in the Central African Republic ( CAR), an at times tumultuous country to the north of the Democratic Republic of Congo. And while Axmin did manage to generate market momentum as it was proving up the project from 2003 to 2007, much of that momentum was lost when the government stalled on issuing a mining license and took away its rights to an iron ore discovery near Passendro.
The market has been slow to warm to the story ever since, even though the company has struck a favorable mining accord with the government, regained the rights to the iron ore grounds, and now - most importantly of all - is closing in on finalizing financing that would secure roughly two thirds of the capital it needs to build Passendro.
The latest announcement comes roughly six months after the company announced it had struck a deal with the South Africa's Standard Bank for $100 million. That news had the company's share price rally but unfortunately for Axmin shareholders, that rally was short lived and the company's market cap began to sag.
The latest news that it is set to raise another $85 million, had little impact as Axmin shares were up flat in Toronto on Jan. 26 at 5.5¢.
The poor market performance has come despite the company holding 1.5 million oz. of proven and probable reserves at an average grade of 1.9 grams gold and another 2.03 million oz. of measured and indicated grading 2 grams gold.
The deposit is anticipated to feed into a mill that will turn out 205,000 oz. of gold in its first three years of operation at operating cash cost of US$437.
Using a 5% discount, the project has a net present value (NPV) of $340 million but Axmin's market cap sits at just $34 million. And that's to say nothing of the roughly $10 million in cash it is sitting on - an amount left remaining even after it made an early and final payment to the government of CAR for $3 million earlier this month.
"There's not a decent correlation between where we are, what we have and what we are doing and our market cap," Axmin chief executive George Roach says.
But with the latest announcement that could be set to change.
While the lending institutions didn't want to be named at this point, Roach says they are European-based development agencies with a mandate to encourage economic growth in Africa.
"We don't get any huge favors," Roach says when asked if the agencies offer better terms than commercial institutions. "Although they want to do business in Africa for moral reasons, that doesn't change the fact that they want their money back."
He says the terms offered are comparable to what large commercial banks are offering.
The debt financing deal will be finalized once some remaining due diligences are completed. The key work left to be done is on the legal side, where the process will be for lawyers to confirm the stability and legitimacy of the company's mining agreement with the government and the role that international arbitrators would play in the case of any disputes.
Roach says that legal council has advised that such due diligence should be done by March 31 of this year.