Pros And Cons : Goliath vs THE BEAST (Goldboro)I think that the first discussion could be about the properties. I already detailed a comparison sheet between the two base on the last NI-43-101 published by both companies
Merger DD : Data Comparison Between NexGold And Signal Gold.
After my DD, I think (i.e. debatable), that Goldboro brings more on the table than Goliath. Here is what's behind my reasoning.
- Goldboro shows currently more resources (3.124Moz at $1600 gold) than Goliath (2.95Moz at 1700$ gold). Goliath has however 1.46Moz in the reserve category vs 1.15Moz for Goldboro. However, there are a lot of drilling done at Goldboro that have not been included in Goldboro's resource estimate. Also, NexGold has used a higher gold price for their PFS study.
- Resource is higer grade for Goldboro
- Goldboro pitable resources (1.5 to 2.0 kms) are much more closer than for Goliath Complex (over 35 kms).
- Goldboro is free of royalty. There are several royalties set on Goliath complex (2.2% NSR to Sprott Resources for the entire life of the project;Other royalties from 1% to 2.5% on some parcels; Total of about $100k yearly payments to some land owners). This gives a lot more leverage for Goldboro to finance the development of the mine.
- It seems that Goldboro is closer to production than Goliath.
- I'm not considering the initial capex for developing the mines as even if Goldboro has the lowest one ($271M vs $331M), this amount is outdated.
- Right now, the AISC is almost US$200 cheaper for Goldboro (US$849/oz vs US$1037/oz). Perhaps costs will go higher for Goldboro as the FS is 1 year older than Goliath's one, but I would be surprised if they pass the US$1000 mark.
So all in all, I think we could put the following CONS and PROS when conparing the properties:
NexGold
CONS:
- Royalties are present on the properties
Signal Gold
PROS:
- Slightly better resource package (more resources and simpler open pits)
- More leverage in financing the mine as Goldboro is royalty free
Comments anybody?