Signal Gold Inc T.SGNL

PEA numbers

[GrumpyInvestor]

The PEA is finally out, and shows good numbers.

The problem is that those good numbers are a bit below what I think most of us expected, wich explains a bigger pullback than I expected. The NPV is lower than I hoped for and the production costs are a bit higher. Also, the initial cash required before production (287$M) is too high to be delt with by debt alone, so we must expect some dilution before we reach production.

 

As for now, with a NPV of 547$M, you can’t expect a take-out offer at 5 $ per share!  So, we have to be patient (again) and hope that institutions finally take notice and give us a good steady increase before the FS, with occasional dips and spikes along the way.

[longagau2]

yep, I was wayyy off on IRR and capex. Short term opportunistic takeover numbers now seem in the 2 to 3 dollar range. With this reaction and the very conservative nature of the PEA, ANX will be much better off continuing towards development and further exploration of goldboro and tilt cove. Even at these numbers, with current gold price, ANX is making EBITDA of 100+ million per year starting up in

[NLMoose]

The problem is that most of these investors like failed their university or college level Finance course as Anaconda Mining's Goldboro project has a great Net Present Value of over 1/2 billion dollars, and an Internal Rate of Return of 24 - 30%, which is why that stock is being disproportionately punished as opposed to be rightfully rewarded. In other words, Anaconda Mining stock should be

[GrumpyInvestor]

In that Finance course, I hope they will teach the difference between investors wanting to take some profits after a nice run leading up to a news realease, rather than wanting to « punish » the stock for that news release !

[nozzpack]

That is correct.  Aftertax NPV is not all that different from total Capex. But adding years to the open pit LOM would add much more to the NPV. For a good example see my earlier post of today re PEA for Valentine Lake NL and Adumbi  of  Loncor.