Reasons
here are my thoughts on the biggest reasons 1) high AISC is a big one. Investors dont want to invest in companies who plan to have lower AISC in 3 years, they want it now. EQX is choosing to invest a lot to explore and extend mine life which raises AISC at most of their sites. In a few years this will pay off, but investors that want returns now dont give much thought to returns 3 years from now 2) the market has given zero value to their Los Filos mine in Mexico because of community blockades that ended 6 months ago. It normally takes a substantial period of time before investors will believe that an asset like that had been derisked enough to assign it any value. 3) Construction risk is pretty high for Greenstone because it's a lot of capital. Some construction risk is being removed with their Brazil mine startup, but not much. 4) Mine production risk seems high as investors could be afraid of a gold mine in Ontario because there have been a number of recent gold mines in Ontario with major production issues upon startup (Pure Golds Madsen mine, Harte Golds Sugar zone mine). The geology of Greenstone is much different than that of those other mines, but many investors wont know this and will simply want to stay away from Ontario gold mines altogether. Those are my biggest ones. IMO the biggest risk still is the Los Filos mine situation. If that community does another boneheaded blockade, that asset likely gets shut down and becomes distressed. No other mining company would ever buy it they'd be idiots to do so because there have been so many community based issues at that mine for the past 3 companies that have owned it. These are just my opinions as to why the stock is still depressed despite higher gold price. Thoughts from anyone?