RE:For 2021, with Roxgold we expect.....Not likely having Teranga as a buyer as EDV.to is purshasing Teranga in a 2.4B deal.
We may get bought out by EDV-- yes. Not for a little while longer though.
This gives ROXG a chance to start the new mine and get re-rated higher as a two mine producer as opposed to a one mine operator and explorer. For those not sure about the price projections, I do see a $3+ price possible over the course of the year. This will be predicated on the assumption that gold goes higher and stays higher for the year.
Personally, I'm not expecting anything crazy like 3K in 2021 for gold but not unreasonable to get 2100-2200 for the year? That gives ROXG about a 1100-1200 over it's AISC of about 950/oz AU. Not too shabby. I see $3 for sure in that environment.
Please do your own DD as this is not investment advice. I like the opportunity here for sure and as mentioned, many producers will be rolling in free cash flow. The mergers will start happening soon. Just hate these "mergers of equals" as it does not provide a proper premium for really good junior plays. Then again, it does provide the disipline for a proper expansiojn and growth for gold companies in the longer run. I do miss the days of a 30-50% premium over current share prices.
I was very lucky in the last run-up albeit it was more predictable and as mentioned, premiums were juicy especially for smaller 100K+ oz operating mines. I can't wait for this one. this is just the start and hoping for good things in 2021. Just be careful to take profits on the way up. The downturn after the last gold run-up was deadly.
Those were the days! All the best folks!
Also, good luck to our friends down south. This will be a crucial voting week on many fronts.
sb