RE:RE:RE:RE:RE:RE:RE:Press releaseAssuming $2,000 gold and a mine cost of $500/ounce with 500,000 ounces per year and a 5% discount rate we are looking at a NPV of $3,000,000,000 approximately for Keats in your example. I assume $200 million for mill development cost which may or may not be anywhere near reality. But, good for back of envelop estimate for now. Fair value of just Keats at moment seems reasonable at $10 per share or 50% of NPV.
Simple assumptions to be sure, but close enough to give confidence to some of us at least. I would expect majors to be biting at the bit for thiis one! And they are all swimming in cash with robust share prices!
May be a little high their tiger ( pun intended).
Fosterville was below 200 but they already had a mine and it actually
undershot their mining plan.
IMHO I think they will beat that. Just too much gold at surface and in
a very small defined area. Not a lot of dirt to move. IKE