Sometimes I comment that in my opinion both GOR and DEG are way overvalued.DEG for example is valued at about 3.5billion.It doesnt have a permit to mine ,The costs of building a mine continue to escalate.Long term interest rates are rising making financing a mine more expensive .Construction of a mine is not yet started and likely won’t happen for months. Processing sulphide ore is much more complicated and expensive. I noticed today ,Iamgold which is a midsized producer in Canada ,reported results today .Highly profitable ,production to be almost 700,000 ounces this year .Its value is only 15% higher than DEG.Its share price has gone up 100% in the last year as one of its big mines(Côté )comes on stream.GOR would be much smarter to sell of its DEG share at these temporarily higher prices and invest in Iamgold.If you want an explorer there are lots of them out there ,you can buy 2 million ounces in reserves (none sulphide ore) for about 50 million.
GOR Price at posting:
$1.83 Sentiment: Sell Disclosure: Not Held
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