Snowline Gold Corp V.SGD

End Game...?

[AlwaysLong683]

SGD currently has a market cap of just under $1B.

 

Agree SGD will be bought out since there's no way this company can fund the capex needed to pour any gold given where the land packages are located and the amount of initial capex that will be required to get to first pour. When and at what price per fully-diluted share are the questions.

 

I think it will be at least another couple of years before a buyout occurs. When it does, I bet it's an all-share deal with BTO being the favorite. I doubt ABX will be the buyer as Bristow seems to be steering the company's future towards a more copper-heavy company or acquiring current producers that will add ounces immediately.

 

As far as the share price equivalent SGD shareholders will receive, it'll depend on how far the company has proceeded with their find(s) (MRE? FS?), how many fullly diluted shares exist at the time, how much initial capex the buyer estimates it will cost to get to first pour, etc. Wouldn't want to venture a guess, but I doubt the total dollar equivalent purchase price for the company will be any more than $2B given the above.

[eatmorefiber2]

You wouldn't want to venture a guess, but you did and it's FUDdy.  You also don't factor in the high possibility of finding another Valley at Aurelius, Jupiter, Gracie, etc. Multiple RIRGs means multiples of the current market cap.  I always said GBR sold for too low because the gold price was bound to go higher, and I was right. Another factor you don't consider is

[eatmorefiber2]

This post has been removed in accordance with Community Policy

[AlwaysLong683]

A company that can't mine it's own discoveries is only worth what another entity is willing to pay for it. If more discoveries are made, you don't get those ounces free of charge - it can add substantially to the initial capex, especially if they are quite a distance away from where the mine and mill will be built. This is wilderness territory after all. Currently: 147M shares

[eatmorefiber2]

Oh really? How's your call on that GBR is going to take a "long long time to pay off for investors (K)"? Up 250% since your call. https://stockhouse.com/companies/bullboard?symbol=v.nfg&postid=34745260 And in the very same post, you claim NFG has one of the best, if not the best discoveries of all time? LOLOLOL How's NFG working out for everyone since your call from 2022

[AlwaysLong683]

GBR was purchased by Kinross back in December 2021 with the deal closing in February 2022. You may recall Kinross had significant assets in Russia when there were sanctions being put on products produced in Russia, so Kinross wanted to sell those assets and was looking for a buyer, eventually selling them in June 2022. They wanted to replace them so they purchased GBR at a price that other gold

[eatmorefiber2]

What lie? I said K (Kinross) is up 250% since your call that NFG is the best of the best of the best. The GBR acquisition was one of Kinross' best decisions ever, as evidenced through a nearly 250% increase in the price of K since the GBR acquisition. And with respect to ABX, you gotta be kidding me? Bristow couldn't see value if it fell on his foot. Just look at the abysmal performance

[AlwaysLong683]

The GBR acquisition was one of Kinross' best decisions ever, as evidenced through a nearly 250% increase in the price of K since the GBR acquisition.   December 2021: K announces purchase of GBR. K share price in the $7.00 - $7.25 range.   February 2022: K closes the purchase of GBR. K share price still in the $7.00 to $7.25 range.   K closed yesterday at $10.88, up

[eatmorefiber2]

You were not there, were you? Many of us did not get our shares until March through April. And by May the stock had cratered because of incessant short selling to front-run receipt of the shares and a belief that K overpaid to acquire GBR, much like the opinion held by your very own Bristow. It finally bottomed at $4 in June and since then it's up 250% after additional drilling by the K team

[speedyg999]

SGD maybe at $10 at the end of this drilling season. Takeover at $13-$15 by year-end.