RE:RE:RE:RE:RE:RE:Things are heating up...Yes, the higher the discount rate the lower the duration of the cash flows and the higer the % of "NPV" attributed to the years not so far out.
But that is besides the point. The point is that you cant compare the valuation of Gold RESERVES of a permitted and producing mine to the RESOURCE of TUD that is a few years away from a production decision and years away from production. So there is time AND risk involved. There is a huge cost to that.
As McCLuskey said, the permits which would take 10 years were reason enough to buy it! AR shareholders got alot less back on the deal than they invested in Magnino as well. Buyers always prefer to see something derisked. THe main exception to this rule???? High grade!!! Grade is king. Great Bear is a prime example of this. High grade is the only thing tha creates FOMO amongst the majors. Other than that, theyre pretty disciplined.
stockzorg wrote: Two different calculations sir. When you discount returns on mine development at 10% half of the reserves become worthless after 7.2 years of mine life (rule of 72). No one would ever buy any mine using 10%.
When I buy junior mining stocks pre-production I'm looking for 10X returns. Two good prospects for me this year so far are AMQFF which I bought at $.04 now at $.40 and ATBHF bought at .02 now at .09.
Mine development status might be more important if companies were not paying big bucks for exploration prospects that don't even have maiden estimates.
We seem to agree on Seabridge.