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Rye Patch Gold RPMGD

Rye Patch Gold Corp is a Nevada based, Tier 1 mining company engaged in the mining and development of quality resource-based gold and silver mines and projects. The firm operates in one segment, which is the Exploration and Development of Mineral Properties. The firm operates through two geographical areas, Canada and the state of Nevada in the United States of America. The company's primary source of revenue is from the sale of gold dore.


OTCQX:RPMGD - Post by User

Bullboard Posts
Comment by pipefit2on Apr 25, 2012 10:03am
210 Views
Post# 19833202

RE: Wilco

RE: Wilco

I own the shares, so I want the stock price to move higher.  I just don't see the Wilco 43-101 update as being the catalyst for an advance.  The market doesn't seem to be pricing in much, so you might be right about a surprise on the high side.

Seems fafetched that the stock would react that much though.  Wilco accounts for 75% of the company's 43-101 ounces, so if you allocate 75% of the market cap to Wilco (which is way too high, given that Wilco is now just one of 7 projects), but let's go with the 75% anyway. 

Then the market is putting a value of $72 million on the whole company, and 75% of that would be $54 million.  And $54 million of Wilco value, divided by 3 million Wilco ounces, equal a value of $18/oz.

Obviously, the market cap of the company is spread around a lot more, and in reality, investors are valuing the Wilco ounces at less than half that, maybe $9/oz.  What good will it do us to have another 500,000 ounces at $9/oz?  Not much, of course.  This is why they aren't drilling at Wilco any more. 

My guess is that investors have placed a higher value on the half million Lincoln ounces, then on all of Wilco's 3 million ounces.

Bullboard Posts