RE:RE:RE:RE:Cynthia’s post on LinkedIn todayI can't say you are wrong. No one really knows but I'm not sure I would want that based on what it would be acquired for.
We can all agree that Laurion's stock price and market cap are not representative of it's value, Ok, but I would argue that market cap is a good representation for larger and more established producers like Equinox, Kinross and Barrick. I will use USD as that seems to be typical when talking about acquisitions.
Equinox has a marketcap of 1.6 billion. Total revenue of just under $1 billion/year and 200 million in cash. Last quarter they produced 122,000 ounces of gold. They have many properties including the a 60% stake in the Greenstone, a 1.3 billion dollar investment not too far from the Ishkoday, which is scheduled to start producing in the first half of next year.
If Laurion sold for 1.6 billion that would be ~6/share. Do you think it's worth that right now?
Matlas math (20+ /share) ~5.2 billion
Kinross has a market cap of 6.28 billion toady, total revenue of 3.4 billion and 400 million in cash. Multiple properties including the Dixie Project acquired from Great Bear and produced 466,000 ounces last quarter.
Laurion has no to little revenue, has ~8 million dollars and is at least 3-5 years from production.
Realistically how is it worth more than $2/share right now?
Still a fantastic return and one that I wouldn't balk at, but higher than that...right now...I don't see the math.