Sentiment for gold is nearly as low now as it was in late 2015. Stocks aren't as beaten up now as they were then and most of them aren't bloated with uncomfortable debts so the level of that run is unlikely to be repeated but valuations of a lot of juniors still seem cheap to me.
Let's take an average 1Moz deposit at 1.5g/t.
Say AISC of around US$800
If you want a 10 yr LOM you need to process about 2.5Mtpa. Let's say capex of $150m - $150/oz. Let's round up to total costs of $1,000.
Still leaves $200/oz margins for some juniors that are trading at <$10/oz of JORC resources right now. If gold price rebounds like those fundies are expecting (current short positions in gold are at ATH) then this only improves.
Even taking discounting for time value of money into effect that leaves some pretty solid meat on the bones.
Not a buy recommendation for this or any other gold stock as the blood could get worse but it's something worth considering.
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