RE:RE:Kudos to CT You did ask in a couple of previous posts about the sale of Battle North to Evolution Mining and what I thought. So here is my take.
First it's way above my pay grade to comment on the economics of a mine and the NPV, AISC etc etc. But this is what I have seen from the sale.
It is very close to us. It was bought out by the company who now owns the Red Lake Mine. According to their Feasability study of October 2020, they had a mine life of 8.2 years at an average production of 80,000 ounces per year.
That suggests they had 656,000 ounces and possibly more. The sale also included a large land package.
Using the idea that the share price can be worked out by figuring out what the value of the gold was, and that often, a company is bought out at an average of 10% (that's what I read on the internet, I didn't just grab it out of thin air), then we can see what is possible for GBR with this method.
The gold price today in CAN is $2157.
Battle North
656,000 ounces x $2157 = $1,414,992.000
Bought for $343,000,000.
$1,414,992,000 x 24.24% = $342,994,060.80
So it looks like Battle North instead of getting bought for 10% of the total, got bought for 24.24%.
I'd imagine this is for the upside with the additional possible gold and the huge land package.
Now of course we have to make assumptions as we don’t yet know how many ounces there are at the LP Fault or the Hinge/Limb/Arrow zones.
Lets go for 10M at the LP and 5M at H/L/A
LP Fault
10,000,000 ounces = $21,570,000,000
$21,570,000,000 x 0.2424 = $5,228,568,000
$5,228,568,000 / 62,000,000 shares = $84.33/share.
H/L/A
5,000,000 ounces = $10,785,000,000
$10,785,000,000 x .2424 = $2,614,284,000
$2,614,284,000 / 62,000,000 shares = $42.165/share.
So this method using a new buyout right next door, also suggests that we could be looking at over $100 per share quite easily.