Theoretical ESM valuationsBored and playing with numbers again (conservatively):
I'm using $3000/oz USD gold (estimate in a couple of years), with the concentrate's payable rate at 85% of that spot price, $1100 USD AISC and a $700M USD CAPEX (took inflation estimates into account for AISC and CAPEX). With that we have a pre-tax NPV8 of $1.5B CAD ($1.2B after-tax), and using NPV10, we have pre-tax $1.2B CAD ($940M after-tax). Most miners use a less conservative NPV5. Compare that to the $14M CAD we have been trading at lately and you see we have a significantly asymmetric investment.