VTR vs. KGN Hi, so as you can see below, Volta Resources seems VERY similar to Keegan Resources in property, yet its trading at almost a 1/3rd of its market cap. I understand that Keegan resources holds over $200 Million in cash due to lots of financing, but my question is why was Keegan so well financed? Why did investors pool money into Keegan instead of Volta Resources, which has just as good property? The geopolitical risk is very similar between the two jurisdictions so that can't be it. Grades, amount of resources, capex and NPV are also very similar. Thought's appreciated - thanks!
Volta Resources:
Proven & Probable: 3.89 Million Ounces AU
Average Grade: 0.96g/ton
Ounces to produce per year: 340,000
CAPEX: $609 Million
Pre-Tax NPV (8% discount): $548 Million at POG of $1372/oz
Location: Burkina Faso
Percentage of Property Owned: 81% (9% by local Burkinabe company and 10% by Government)
Market Cap: $108 Million
Keegan Resources:
Proven & Probable: 2.88 Million Ounces AU
Average Grade: Grade: 1.10g/ton
CAPEX: $506 Million
Ounces to produce per year: 330,000 in first year, and a LOM average of 258,000oz/year
Pre-Tax NPV(5% discount): $373M at POG $1300/oz and $639 at POG of $1500/oz
Location: Ghana
Percentage of Property Owned: 90% (10% by Government)
Market Cap: $270 Million
DISCLAIMER: Information above may not be exactly accurate, so please do your own due dilligence in case I made any mistakes.