RE:300H Under the Mountaintop Anomaly
Doug:
I wonder given the massive tonnages involved and pit design constraints how many of those ounces are discounted to close to zero NPV.
I've been ballparking $30USD/tonne rock, the economies of scale in production are obviously there, but the capex is going to be heavy, and the time to mine very long.
Extremely interested in a PEA of course, rough rules of thumb and modelling suggest a robust deposit, and even at a 90% discount of the contained metal value TUO can climb to well over $7/share on GS alone at current spot gold. What would really help is a move in gold. To me the upside is all about the leverage to spot gold and the need for the major gold miners to show mineable resource ounces for their forward valuations and cashflow models. The capex muscle to actually take on developing TC/KSM is way out of the current owner's leagues I'm thinking.
What I don't know is how much (or little) they are willing to pay for long-term defererred ounces for the optics of massively bulking their balance sheets with virtually unlimited future ounces if they can tie up the whole chain of deposits.
Agree with you on the macro picture and wonder how long it will take an overreaching FED and a fractured legislative branch to start to win the devaluation race on the dollar - I believe in the inverse relationship between the dollar and gold reasserting itself.
Amazing when the Secretary of the Treasury is warning of the material possibility of impending financial catastrophe for the Federal government, the Chinese are propping up over-inflated financial assets, the market is high on fumes from years of uber-accomodation, the gold price continues to be soft and the public seems to feel like being on a slippery slope into a pool of ugly outcomes is no reason to get alarmed and buy some of the best insurance mankind has ever had for financial disasters.
Whatever. Leverage to gold in the millions of ounces at TC is proven, whatever the net value per ounce.
cg