RE:RE:RE:thinking about our future...Silverwhere wrote:
... If Novo Longs believe we have as much gold as Pretium, and can mine it for similar costs & profit then the following math could be of interest to you . . . Pretium (T.PVG)'s current Market Cap = 2.2 billion. Say Novo's current Market Cap = 0.68 billion. For the two companies to have the same Market Caps for the same types of mining profits (please bashers - we Longs are just assuming & looking into the future so please don't blow any gaskets over this) . . . 2.2 B / 0.68 B = 3.235 times. Let's say Novo's current share price is $4.30 per share x 3.235 = $13.91 per share. This is based on Novo "only" having the same potential as what PVG is enjoying right now. Most Novo Longs will probably agree that the Long Term outlook for Novo could be brighter than Pretium's, much brighter, meaning $13.91 per share could turn out to be a fairly conservative number in future hindsight - by an order of magnitude ? . . . . . . . . . . .
Keep in mind that Prentium has 8.7 million ounces of gold reserves and their operating costs are $326 an ounce. Comet Well alone could easily have 11 million ounces. At 80%, Novo's share would be 8.7 million ounces....equivilent to Prentium. Grade at Prentium is 10.7 gpt.....estimating equivilent to Novo grade. Furthermore, I suspect (and I think Kieth Barron would agree) that Novo's operating costs per ounce could be half of Prentiums. So add another $160 of profit per ounce. That increases Novo's potential profits by 50%. So instead of $13.91 a share for Novo, you are conservatively looking at $20.80 a share... apples to apples.
Bottom line?
With the same ounces in the ground. CHECK
With the same grades. EASY ASSUMPTION TO MAKE
With reduced costs of production. Another easy assumption
And the same market cap....We've got a quintuple from here, if we can prove up just 11 million ounces at Comet Well ALONE!