RE: This is IRR for SSP ....similiar grades...??? Doesn't appear to be anything wrong with that - and they're getting 0 credit. But that's the market right now. People pretend the analysis is objective, but it really isn't. Assumptions on future gold price for instance, but also what acceptable rates of return are, what political risk is, etc. I've noticed that a lot of the opinion that comes out just makes assumptions and draws conclusions that support whatever the market bias is at the time.
For example, imagine tech stocks were out of favor in the US - you could probably cook up a pretty good case for why AAPL should be at $60 if you
1) Assume that IPODS will sell on average for $100
2) Assume that the market for Apple products will decrease in size as their popularity wanes
3) Assume that competition from Android will eat further into their market share
4) Assume production costs will increase b 3x - 5x once the fallout of Foxconn forces improved labor conditions and wages for chinese manufacturers
The same kind of (unrealistically) negative assumptions are what's causing all the negativity in the junior mining stocks today. Not sure how far they'll continue down before buying steps up, although I was reading a Peter Grandich article today, and even he's beaten down and sounds ready to give up on them. So either the Venture exchange (and TSX junior minors as well) is heading for extinction, or we have to be getting close to the bottom. I read another article somewhere that the BPGDM (bullish percentage of mining stocks) at 10% is close to where it usually bottoms, talk about an exaggeration! The only times it was lower were December 2011 (about 1/2 percent lower) and in November 2008 (when it went to 0). Honestly at 10% it pretty much has no choice but to be close to a bottom - can't go LOWER than zero.
Anyway, I'm not expecting an immediate positive reaction to the PFS anymore (although I'd like to see one) because I think the entire sector's now committed to finding the negative in ANY news. But company has lots of cash, gold's going nowhere but up over the next few years at least, and eventually the value investors will start buying the bigger players, if only for their dividends as the price of gold rises. Still convinced that when the sector finally turns, for those who are in early the returns are likely to be stellar. Sure hurts at the moment, though.
If tech stocks were in a prolonged bear market downtrend you'd probably see this kind of analysis. Right now they're hot, so everybody's focusing on justifying the trend that's already in place.