RE:SA ArticleThe numbers are just insane with 30 million oz.s projected production, exactly how insane to be determined by the wild card of the Ag price of course but even with Ag a modest $10 above AISC that is FCF of 300 million USD/year and the market cap is $325 million CAD right now. Plug-in $50 to $100 Ag and you think your calculator is messing with you. If Ag gets up toward $100 for example so that they make $75/oz. the FCF gets to around $3 billionCAD/year. For the capex of $450 million, the article proposes %50 share dilution to 600 million shares and debt of $300 million which seems irrelevant compared to cash flows at $50-100 Ag.
Also worth pasting the comment on the management, these are not guys who would attach their names and allocate time and effort to a marginal project and be happy with siphoning a salary and options from it. They are guys who build highly profitable mines and they wouldn't waste their time on any project that doesn't have that potential.
The management team has an excellent track record. The CEO, Tony Makuch, was the guy who made Kirkland Lake a success. He also had success at Lakeshore Gold. Tony Esplin, the COO, spent more than 20 years at Newmont, successfully running some of the biggest gold mines in the world. They're ready to build this mine (refer to this recent podcast where the CEO provides an update). They have 35% insiders, with management and founders owning 10% of the shares and Eric Sprott with 25%. I don't think they will sell early and want to take this to production.