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Signal Gold Inc ANXGD


Primary Symbol: T.SGNL

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Post by longagau2on Feb 22, 2021 3:08pm
234 Views
Post# 32628475

Updated takeover/buyout comparisons - Monarch and Atlantic

Updated takeover/buyout comparisons - Monarch and AtlanticAtlantic gold got taken over for around 450 CAD per ounce of gold in the ground, but the gold price was much lower at the time, around 1400 us per ounce.  As well, they were in production, a big difference.  At 450 CAD per ounce, it would value goldboro around 1.3 billion, or about $8.10 per share.  At 700 CAD per ounce (accounting for about half of the increase in gold price since then, it puts it at around $12.60 per share).  So those are in production numbers, which is at least a year or two off.  But, there would probably be some dilution to fund the development of goldboro (although not that much as ANX should get financing fairly easily).   This is not taking into account the potential for greatly expanding the goldboro deposit with more drilling in nearby unexplored areas on the claim.

Monarch being taken over by yamana is an interesting comparison as well. 1.8Moz for $200 million or around $110 per ounce. They had a feasibility study but had litlle cash, no production and no way to bring the mine into production without a partner. AND yamana owned a huge chunk of monarch already anyways, which reduced the chance anyone else would sign on. At 2.75Moz for goldboro, $110 per ounce puts a value of around $300 million for acquisition, or around $2 per share.  This severely undervalues ANX.

My guess for a buy out of Goldboro to be successful would be $4 per share or so right now.

All these numbers don't really take into account the value of the Newfoundland mine and claims, so maybe up to $5 per share for all of ANX, but Tilt Cove could bring that up.

The longer we can hold off a buy out and get closer to production and more drilling revealing the deposit is larger and larger, the higher the price, especially with the potential for even more at Tilt Cove in newfoundland.  

So that is from a complete non-expert in the field, but that is my 2 cents.  It is more optimistic than most estimates I have seen.



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