GREY:ARGEF - Post by User
Post by
canada7on Feb 20, 2011 3:55pm
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Post# 18166936
Just look at GBU
Just look at GBUJust check GBU, it has over $2.8B market cap, with 14.6M oz of gold (about $20B metal value), but not sure that when it will produce due to various environment issues, IRR will be only 28% if it ever produces according to GBU management. Thus, it will take 3 years to recover the capex.
RGX is likely to have 60M tons, about 17 g/t gold equivalent, or about 25M oz of gold equivalent, and will produce in Q2 2012, market cap only $60M (assuming 74M shares). IRR expected to be triple digits, will recover the cost in one year.
GBU property in Romania, RGX in friendly Quebec with mining as a priority, TiO2 price going up, by the time when RGX in commercial production, the gold equivalent might be 40 M oz of gold, and it is likely commercial plant can be paid for by the pilot mining alone without any further dilution.
Just looking over IRR, RGX should be valued at $2.8B instead. From the production point of view, RGX should have value greater than GBU.
If the market is wiling to give 1/2 of valuation of GBU to RGX when RGX issues 43-101, RGX should be $12 (assuming 120 diluted shares).
Just wait for 43-101 and that should be coming very very soon.