The best proxy for gcm is lundin gold( the fabulous fruta del norte mine )
1) the mine is not so far away from segovia , and same environment .
The chart is EXACTLY the same. ( so i personaly don't think sprott has such impact short term )
2) but look how undervalued gcm is :
Lug will make 200/ 220 koz this year . At round 800 (+covid impact ) usd aisc . 35 mil in cash and 350 mil usd yes 350 in debt .
LUG is priced ....2.8 billions.... cad . 7x gcm . Or round 12 x segovia alone if cgc stake is removed .
Why this spread ? Lug is able to present more than 5 mil oz in reserve ( at 8 g ) while segovia less than 1 mil in pp reserve and 2.5 mil in indicated and inferred cat .
Serafino has just to improve and communicate on this problem. Except for the people here , this line of weakness put surely a brake on the stock . But this is stupid as the past of segovia speaks for its future .
But what's ridiculous , is that gcm will earn same or more money than lug the years coming .So from a fcf point of vue Gcm is undervalued ad nauseam.
------------------------------
Gcm mcap is 410 mil cad . Basic maths: 110 mil for caldas , 30 mil for gldx , and round 60 mil ( cash less debt in cad )
It means segovia the new gcm is about 200 mil cad or 135 mil usd .
How a company making 100 mil usd year above aisc, here forever , soon without debt, can be priced 135 mil usd ??? I know well the dollar is worthless .... but ...-))
This is not pumping , or correct me where am wrong please .
Am absolutly sure , once the 7.30cad resistance broken , the stock will shoot well above 10 . ( at gold constant price ) and x2 at 2500 .
The best for the gcm shareholders.( to which i belong )