RE:Equinox pays $1 Bill for 40% of Greenstone.PT, a little learning can be a VERY DANGEROUS THING.
I believe you are struggling to make a couple of points in an effort to attract buyers to Victoria Gold stock.I'll try to address without turning this into a course.
Jump in anybody else!
1) AISC for Artemis' Blackwater Mine is expected to be $578/oz. AISC for Equinox' Greenstone mine is expected to be $890/oz.
These figures are a LONG WAY from Victoria Gold's current AISC.
2) The more IMPORTANT point is that both your examples are in DEVELOPMENT.
Victoria Gold is in OPERATION.
So as I said in an earlier post you are comparing APPLES to ONIONS.
To compare projects or mines for sale (or takeover) requires IMO a sensitivity analysis with inputs.
Here is a short, incomplete list:
Mine size
Grade
Location of mine
Location to rail
Strip ratio
Cost of mining
Cost of processing
Tax jurisdiction
For one small example, Greenstone"s reserves are 10 Million ozs. at a grade almost DOUBLE that of Victoria Gold's. These differences need to be given values for comparison in order to arrive at a price.
Having said this, others on this board may jump in with different analysis tools which may yield different results.
That's why we have a market.
BWDIK ?
DYODD