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Signal Gold Inc T.SGNL

Alternate Symbol(s):  SGNLF

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

Comment by danieltijana02on Jun 26, 2021 3:49pm
241 Views
Post# 33456481

RE:PEA News - Share Price Thoughts

RE:PEA News - Share Price ThoughtsHow do you come up with C$3.80 per share on 186 million shares fully diluted?


That makes a valuation of C$707 million. What developers in PEA stage are you aware of that are trading at 1.2x NPV at $1,700/oz. As almost always occurs, NPV drops from PEA to FS as costs are stricter, higher contingency used, and less material in mine plan. 


If assume C$600M NPV in FS, and you are sugesting $3.80 per share in value, Goldboro is valued nearly valued at 1.2x NPV (as you say, 0 value in your $3.80 per share view for P. Rousse).  Companies like Marathon, Ascot, and Capricorn trade at 0.75x NPV or less and they are closer to production, and closer to Feasibility Stage than Anaconda. 

Most importantly, Nova Scotia is one of the worst-ranked jurisdictions in Fraser Institute, well behind Newfoundland, Australia, and BC.

Its ranked behind Papua New Guinea, South Africa, and Dominican and is the worst ranked Canadian jurisdiction. A rating of 0.7x NPV is generous. 


"Quebec performed particularly well this year on the amount of time it takes to acquire necessary permits for exploration activities; half of respondents indicated that they were able to acquire the necessary permits for exploration in two months or less. Nova Scotia, on the other hand, was the only Canadian jurisdiction in which no respondent indicated that they were able to acquire the necessary permits for exploration in two months or less. The Pan-Canadian average for this measure is 26 percent."
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