RE:RE:And just like thatHello Nozzpack,
I'd be interested to see your calculations. I'm not afraid of a little math. You can see mine in my post history. I have held for about seven years because I see the potential.
What you're saying is that loncor is worth around 700 million dollars. Correct? Well I have a few questions for you sir.
First some context. Fruta Del Norte has at least 5 million ounces, probably more, with much higher grades. Around 8gpt. Granted it is underground, but so is makapela if I'm not mistaken. It sold for 240million. Well, it originally sold for 1.2 billion when gold was trading around todays levels, but accounting for inflation it would probably be equal to around $2200 in todays dollars. Kinross took a loss of several hundred million to get rid of it. Adumbi, if it can reach 5 million ounces is only 2.5gpt.
1. Where do you get $700mil valuation from?
2. Barrick already has control over 65% of most of the non-adumbi stuff, and some stuff near to 85% owned adumbi if I'm not mistaken. They got it for the price of exploration. What is the remaning 35% worth?
3. Why is the market valuing loncor at a cap of 70 million dollars if it is worth so much more? There must be a reason. Don't tell me it is ignorance because we all have access to the same data.
4. What discount is there for being located in a remote part of the jungle, in a unstable jurisdiction?
I held and continue to hold because I believe there is value here. But there is only one potential buyer, Barrick, and they set the terms. This fact along gives them huge leverage. Also, they can afford to wait. It could take another seven years for this investment to mature.