RE:RE:RE:RE:RE:RE:HC Wainwright Hi Sooner, I grossed up Casino into a gold ounce equivalent and then compared it to Gold X's gold ounce equivalent. Casino's resource is aobut 5.8 times that of Toroparu and the capex is also about 5.8 times the size. All things being equal (sans the copper/moly) the projects would be very similar if on the same scale. Both projects would be considered lower grade compared to the global average of around 1 g/pt. But, their immense size and safe jurisdictions make both projects robust in terms of NPV. Different discount rates were used on each projects 2021 PEA, so I won't dig into them too much, but considering the other similarities it is safe to say that Casino would likely be about 5 times higher.
Gold X got taken out on a routine, garden-variety 40% premium based on their recent trading prices. As low a premium as that seemed, the initial attempt by GCM to obtain Gold X in conjunction with a buyout of Guyana Goldfiedls was even worse. We sorta go trapped by the fact that they did up the premium from the first offer, there was no bidding war and GCM was a control person and had leverage over the BoD.
This is why Paul and company were so WISE as to not allow RIO to get a 10% plus foothold in the share structure. The second you lose hand you will lose when it comes time to hammer out a buyout package.
Our formula for success = at time of final negotiations, gold well above $2k, preferably copper in the $5+ range, no single entity with more than 12% ownership of the shares and multiple majors all bidding on Casino. Give me that scenario and you can equate the PEA to toilet paper because at that point nobody will care - it will be FOMO ala the Great Bear merry-go-round!!