GREY:DRGDF - Post by User
Post by
Sharpie009on Dec 02, 2008 1:58pm
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Post# 15622989
Seabridge and Detour
Seabridge and DetourThanks for sharing the article on Seabridge. Very interesting.
Huge capital cost in excess of 3 billion in northern BC with an internal rate of return of 13% on their base case. Better projects out there. Don't like any projects outside of Quebec or Ontario. Quebec is still the number 1 mining jurisdiction in the world. Osisko for comparison purposes has an IRR double that on their project.
Will be interesting to see project economics for Detour if they mine the high grade first. Hopefully they can get below the industry average of $450. In hindsight I wish I would have sold my Detour shares back in early July in the low $20's but hindsight is 20-20. There is no doubt that even with a significant premium on todays prices the takeover price would suck relative to what the price was back in the summer but would still generate a nice return based on current levels. My guess for a takeover price under current conditions might be in the 7-10 range. Wildcard is the price of gold.