GREY:STTYF - Post by User
Post by
materialsgirlon Feb 27, 2013 2:13pm
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Post# 21049988
Somebody is losing their marbles
Somebody is losing their marbles Maybe it is me, maybe not.
Shareholder returns will be driven largely by resource growth as well as derisking its projects as they
move towards production. Entrée's JV on the Oyu Tolgoi resource extensions will not reach
commercial production for over a decade; we therefore carry little relative value for the project at this
time but highlight it as option value.
The text above was forwarded to me. It is from some recent analyst report on Entree Gold.
Since the Mongolian asset is 12 to 40 years away from production any royalty there has a net present value of approximately zero.
Am I missing something? By the way the Nevada mine is also 6 or 7 years away but it could be huge and also hugely profitable with $4+ copper and there are no serious risks of confiscation, permitting etc. The risk is about how to raise $1.6b to $2.0b in capital (capex plus interest plus working capital)
???
Mat