Post by
nozzpack on Jul 17, 2024 6:51am
Peer Based NPV Valuation
This is for gold stocks based on their FS NPV
It has been and continues to be the objective valuation index.
This valuation is based on 0,72 NPV ( Net Present Value ).
Sprott did an Analytical assessment in 2021 based on all M & I gold resources outlining a 10 year mine life at 55,000 ounces per year ( link no longer works ).
The NPV was $251 million CAD from which the fair valuation would be about $175 million cad.$251 ** o.72)
The Nuggett Pond mill was used , which means extra trucking costs and upgrade costs of that mill....so
had the Pine Cove mill been available , the NVP would have been higher than $251 million and even higher at POG above $1800
The 2022 FS was based on just a 5 year mine using the Nugget Pond mill too.
The NPV was $210 million at $2300 POG.....much higher had the Pine Cove mill been avaikable .
The updated FS will include all gold resources, which means a mine life of 10 years and a much higher
NPV......probably over $300 million.
So, taken together, any takeover would have to be $200 million or higher at current Peer fair value.
With the current POG nearing $2500 , we are in the drivers seat as the financing will include funds for exploration and expansion of our current mineable deposits and sustained cash flows much greater than by tolling.....which is why the Nuggett Pond mill is the standby for such additional revenues.
GLTA
Comment by
Ork on Jul 17, 2024 9:49am
yea but lots changed since 2021-gold stock prices still depressed-so cut the expectation in 1/2- large sellers at 5 cnts just makes a buy out even cheaper-Mae mgmt making the stock dirt cheap & basically put 'em on the block, nows the time for buyers to pounce if they be out there . back to thumb twiddling