Well by your own admission that's still a profit from today's...

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mel7691

1,063 Posts.

185

07/11/21

10:06

Post #: 57375578
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Originally posted by Arh0070 ↑

The only question about DEG is how much is it worth now and in 5 years .There is to my knowledge no argument about the quality of DEGs discovery though it is low grade .
Let us assume that it has 10 million ounces with prospects for more ,Current market value for the in ground reserves is then approximately 150$ per ounce in the ground .As I have noted previously a lot of explorers price is down right now so one can find lots of quality explorers with gold reserves values at 50$ or less .Many of these with comparable type discoveries ,some more high grade are mainly in Canada .
What will be the value of DEG in 5 yrs when if all goes well it will be producing 600,000ounces per year profitably(that is a big if in the volatile world of miners) .It will probably take a billion dollars from now to that point in further expenditures .So lets assume another billion more shares issued at a dollar a share ,this would be 2.5 billion shares issued.If one multiplies this by 17$ this would value DEG at 40 billion dollars .This seems highly unlikely and unrealistic as Kirkland Lake is currently valued at 10 Billion and operates three highly profitable mines .
Kirkland Lake within the last couple of years bought out Detour mines which is profitably producing at 600,000 ounces per year ,in the last year detour lake reserves have increased by 10 million ounces .Kl paid 3.5 billion Canadian or thereabouts for Detour lake and Mr market is valuing KL at 10 billion including Detour lake ,Fosterville and another highly profitable high grade mine called Macassa.
So using Mr markets valuation of a mine somewhat similar to Degs in terms of reserves (detour lake has more)and production in 5 years (assuming the POG stays the same )at 3.5-4 billion .
This is a more realistic valuation ,so 2.5 billion shares into 4 billion dollar valuation would in 5 years make DEg share price to be 1.5$ a 40% increase or an 8% per year ROI.

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Well by your own admission that's still a profit from today's price
What exactly are you waiting for???
Buy the dips if you really want back in.

DEG Price at posting: $1.09 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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