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Galway Resources Ltd V.GWY



TSXV:GWY - Post by User

Comment by neinsteinon Sep 13, 2012 9:42pm
197 Views
Post# 20360816

RE: RE: ray jay

RE: RE: ray jay

A few things from the Raymond James report and guessing what california is worth:

1. As was detailed in the release they note any resources in the fractions are not included. This is important. It could be 200,000 to 400,000 ounces.

2. They are only attributing 80% of the 1.1 million ounces to Galway. Galway actually owns 100% of 6 claims and are waiting to hear on the remaining 3. Galway will own at least 80% of those 3.  Therefore we will likely ultimately own approximately 95% of the resource.  We have to wait and see how much gold is on each concession.

No matter what price you are using whether $250/ounce or more, this results in a substantially larger estimate for the value of california.  More ounces, more money. California could easily fetch $300-$400 million or more.

While i still think the Ventana multiple of $400/ounce is out of reach, these little pieces have us heading in the right direction.  Trading below $1.50 seems like a steal. I guess we had to clear out the shorter term shareholders who were betting on a big resource number.

The people that are focusing on the delays have a legitimate complaint but what is done is done.  It seems clear the delay was the result of negotiating the concessions and trying to work towards an resource number over 1 million ounces. Focus on the future. Batista bid for Ventana shortly afer their resource estimate was released.

 

 

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