valuation comparisonBattle North is expected to produce 100,000 oz of gold per year. The company will put out its feasability study probably in September. Considering the very conservative approach taken by George the expectations should be within what has been talked about in the last few months and may very well exceed. The company has the advantage of having pretty much everything lined up to start producing in the next 12 months or so.
The company is considered to be in a sweet spot for miners. The sweet spot is when a company is transitioning from advanced exploration company to an actual producer.
A company like Wesdome who produces about 100,000 oz. per year like Battle North is expected to do is trading at $14 per share. They both have roughly the same share float. What Wesdome does not have is the tax pool losses that Battle has. Wesdome also does not have the land package that Battle has. If you start comparing the two companies you can easily argue that Battle North is more attractive in practically every category.
Therefore, the transitioning phase for Battle North to that of a producer, and the adjustment in the share price to follow only suggests that Battle share price should be higher than that of Wesdome which as I said before trades at $14 per share.
Furthermore, the rise in the gold price will only lift these share prices of all these companies even higher. Therefore what can we expect as a fair price per share for Battle North in the future ? At least 10X what it trades for right now as a bare minimum.