RE:RE:RE:RE:RE:RE:Goldstorm resource estimate: +/- 8.6 million oz for 300HIt’s a helpful discussion Doug.
Snapshot valuations are great for considering the reasonableness of current SP or market cap.
Given that we are facing an extraordinary fiscal and monetary dislocation at the macro-economic level due to the combination of regular market cycles following on the 2008 financial crisis and response, and now Covid and response, what most occupies my thoughts is what price a buyer will pay for Goldstorm ounces, and whether we see some reduction in IRR calculations if a low rate environment persists. So POG of course, interest rate policy of course, but also shifts in the pricing of reserves in light of availability of large deposit reserves to major miners. And valuations given to majors on their operating results in terms of movement of P/E ratios which will drive their calculations of price and risk for reserve acquisitions.
I’ve said before it is common for speculators at this stage to get excited about potential ounce reserve valuation and not leave sufficient upsides to drive take-outs. As might be apparent by what a low price Pretium was willng to give SEA in the last quarter on their deal.
That being said, the addition of the NSRs at TC, the possibilities at PSZ, the upcoming potential at DEC Del Norte, plus the numerous properties in the TUO pipeline ... sure looks as if the current pricing is low to me.
The inflation numbers may start to look high n the next three months as last Spring’s early Covid discounting of prices fall off the year over year calculations. We may have to wait a little while to see how gold responds to what will hopefully be Vovid eradication by Q4 ... there is a huge amount of savings and liquidity out there - but will it push employment and wages? Some economists are wondering about labour shortages developing ... that will light an inflationary fire.
An extremely interesting year ahead.
cg