I stumbled across the name Republic Gold early in the week and...

I stumbled across the name Republic Gold early in the week and have spent several days researching the story. If we ignor for a moment that Amayapampa is located in Bolivia and look at the metrics of a project which is in pre-development phase, having completed a compelling BFS and jumped through all the hoops of a Social Licence Agreement, one is struck by the apparent undervaluation.

Not that the company can't get no respect - Patersons have been financial backers and according to recent company announcements, financial institutions across North America and Latin America are apparently keen to negotiate a finance package to get Amayapampa into production.

The undervaluation is striking when reviewing direct peer comparisons. Utilizing EV/Resource ounce as a measure of valuation;

Republic Gold - $12
Azumah Resources - $138
Chalice Gold - $165
Gryphon Minerals - $235
Ampella Mining - $380

Amayapampa is an exciting prospect particularly when you take into account the cash cost of production and the potential for doubling the size of the resource. So the market doesn't like Bolivia?

Coeur d"Alene likes Bolivia, Pan American Silver likes Bolivia - in fact a growing number of North American companies and their shareholders like Bolivia. Typically, its just Australian investors and brokers who don't like Bolivia but then they didn't like West Africa either. Republic Gold has 'first mover' advantage in a country which is beginning to welcome foreign investment as a means of alleviating poverty through providing employment, schools, infrastructure and doctors.

Admittedly, Republic Gold still has to secure finance. Keeping ones eye on EV/Resource company comparisons, however, the share price has a long way to rise to catch up.