RE:Comparing GT Gold Tatogga to Treaty Creekstockzorg wrote: In mid-2020 GT Gold published the maiden resource estimates for Tatogga. In early 2021 Newmont bought the 85% of GT Gold it didn't already own for $393 million (total valuation $462 million). Here's what Newmont bought for that money (in all categories):
- 8.93 million oz. Au at 0.36 g/t
- 19.22 million oz. Ag at 0.8 g/t
- 4.79 billion lbs. Cu at 0.28%
I'm comparing this to the original Treaty Creek resource estimates:
- 24.55 million oz. Au at 0.66 g/t
- 133.98 million oz. Ag at 3.6 g/t
- 1.426 billion lbs. Cu at 0.06%
For large miners that want more copper in the mix, Treaty Creek was light up to now. But when the amount of copper roughly doubles when the updated estimates are released next year and silver moves higher as well, along with a further increase in gold grade compared to Tatogga, the comparison becomes extreme. Treaty Creek will have 3x the gold, 2x the gold grade, 4x the silver grade, 6x the silver oz, and much more Cu with a higher Cu grade than today.
Every time I do one of these comparison exercises based on recent actual transactions, I get a valuation for Treaty north of $1 Billion at the current price of gold (pretty much the same as when Newmont bought GT Gold). In this case I see Treaty Creek being worth between 2x and 3x what Newmont paid for GT Gold.
The valuation goes up further when I compare to transactions like the Kinross purchase of the Great Bear Dixie project for $1.8 Billion. There is still no maiden estimate for Great Bear and Kinross is drilling 200,000 meters this year. The published drill holes show some nice grades, but the average grade X width per hole is lower than Treaty Creek. Also, Treaty Creek results have begun to show some gold pulses that are closer to Great Bear results.
I'm open to input from the folks who have taken the other side of the Tudor trade. Show me your valuation number for Tudor. Did Kinross and Newmont overpay? Save me from myself before I buy more TUD.
Do your own DD. GLTA. Doug
You're not off....using current resources, if you got even $40/oz that's well over $1 billion. When thr next resource comes out that will double the value I'm sure.