OTCPK:SPVEF - Post by User
Post by
Rick2012on Aug 30, 2017 8:11am
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Post# 26635965
Conservative Valuation
Conservative ValuationWithin Q4 they will have total M&I of at least 1.5 million ounces of gold.
divide that by 8.5 years mine life we get about 175,000 avg per yr.
$1250 gold price less $550 AISC is US $700 profit per oz. Convert to Canadian is $875/oz.
175,000 ounces per yr times $810 is over $150 million cash flow per yr.
Apply a conservative 6x P/CF for being in a safe, mining-friendly jurisdiction with top notch management who have done this before and a land package with lots of exploration upside and we get $900 million market cap. On AGB fully diluted shares of 234 million that's $3.85 Cdn per share.