I posted a few months earlier with a simple analysis as to what IGV% PGM was trading at for the 6million ounce component of the Skaregard project ONLY (please understand that this is ultra conservative as not even taking into consideration of any of there other projects there is a wealth of other resources other than gold at Skaregard which is not added to these calculations).
Previously this was posted when SP = 0.75 and POG = 725. There is the re-cut numbers with revised figures below.
The macros at play at a global level right now are intriguing and gold as the currency as a safe haven, inflation protector and currency for the poorer nations is slowly building momentum. You have to realize that the US alone print 12% new US bills into the economy each year so there real inflation is 12% this money is not backed by GOLD as it should be its just paper money. All that is required to send POG sky rocketing is for china to diversify only 5% of there US bonds and buy gold as a reserve to send POG post $1000 and with the state of the US economy as it is this is very very likely. This is just a snippet of some of the macro drivers but all macro drivers currently are pointing to an increase in POG and the funny thing is the central banks don’t have enough of the real stuff left to flood the market to manipulate the price. Also remember when people speak of 850 as a significant barrier it may be from a mass misconception POV but when you want to compare all time high of POG it has to be inflationary adjusted which would be around 2000 which is where we are heading.
Revised IGV analysis
We are still trading at a 1.17% IGV of the skaergard fold project ALONE as an absolute minimum for a non producing company we should be trading at a minimum of 3% which equates to a SP = $3.9. Is this not a screaming buy in itself based on one project? Add to that the size of the resource 6million ounces the small market cap and the macros at play it get very exciting.
Re-rating is also the big key once gold breaks the $850 barrier or $900 barrier expect a re-rating of all non producing gold stocks to be 5-10% IGV that could equate to a an SP of $6 - $12. I might be getting ahead of myself but in the current environment this is very very likely and this baby has all the hallmarks of a multibagger from here.
Current Figures
Shares on issue 37000000
Ounces of Gold 6000000
Spot price of gold 780
Market Cap 55500000
Current share price 1.5
% IGV = (share price * shares on issue) /(ounces of gold * spot price)
% IGV 1.17%
IGV analysis
Shares on issue 37000000
Ounces of Gold 6000000
Spot price 780 780 780 780 780 780 780
IGV 1.17% 3% 5% 7% 10% 15% 20%
Share Price 1.479891892 3.794595 6.324324 8.854054 12.64865 18.97297 25.2973
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