RE:TUO ValuationI'd love to use Great Bear for valuation purposes. But there is no comparison. GB was high grade. And high grade open in all directions. With bulk of initial resource (technically there was no resource at the time as GB had no interest in publishing one) was open pit. Its in a fantastic jurisdiction (accessibility, permitting, mining expertise, cost etc). You also cant compare mine construction costs and production costs between the 2, night and day. Do I think K overpaid a the time? Yes. But I understand why they did.............they think that will effectively be K moving forward and it is a sure bet, tons of margin for error.
Do I think TUO should get $100/oz in the ground for measured and indicated gold of 21M one day? Yes. Can they get that before a production decision is made? Maybe. In a couple of years. After TUD drops another $100M+++ on the project (for our benefit!!). We also need something definitive on paper for cs600 metallurgy. So that would be my best case scenario for a few years down the road. SOmething more realistic in the short term would be $40/oz. Still a 3 or 4 bagger from here plus you still have the NSR and any other assets.
My views on the NSR differ greatly from Zorg. BUt it is a jewel. And no reason to ever sell it.
bovalena wrote: Thanks Larry, I understand about the beauty of the NSR and the reflexion of its worth as described by Zorg. It is my feeling that Teuton will never get that "far along" that it has to pay for its share of capital cost in building such an expensive mine. That is why I speak in terms of "gold in the ground". It will be sold long before then and it is that predevelopment valuation we are speculating on. So with that in mind, what is the consensus of the recent "simplistic" and extrapolated valuation calculation I suggested and please note I tend to base all of this on the historic price paid for Malartic, Great Bear, and such others. WW