I guess we have to consider the current value of near term cash flow vs. what a similiar asset would be worth that's still 5 years away from permitting and cash flow.
If you take a base case of 5 Million tons per year ( vs. our 9 Million permitted ) @ .62 grams you get roughly 100,000 oz gold per year @ $ 1300 oz = $ 130,000,000 cash flow per year for a cumulative total of $ 650,000,000 over the first 5 years. Of course we plan on increasing that production quite considerably, to maybe 300,000 oz per year but that's for later. At the permitted rate of 9 Million tons we produce roughly 186,000 oz = $ 240,000,000
So where other deposits are just getting going in year 6 we've already generated $ 650,000,000 and we still have 3,500,000 oz left to mine.
Not bad !
Now if a Co,'s assets are repriced upwards when it goes into cash flow wouldn't that mean that a Co. with a great asset that hasn't started the permitting process yet would also benefit from buying our asset that is in cash flow as that cash flow would positively impact the value of all the Co.'s assets. ?
I'm thinking of a Co. like AZ who has a fabulous asset but that asset may not be permitted for years so wouldn't doing a friendly merger with NCA could have the effect of increasing the value of both assets at once.
The whole being worth more than the sum of it's parts so to speak !
Of course this theory could apply to lots of Co.'s but AZ has certain synergies others don't.
It's a thought anyway.