GCY's plant is a massive asset and we're now trading at the plant's value. Massive exploration upside with a $6m budget for the year and a lot of assays to come. With the plant already in place and operational, any exploration success can more easily be translated to profits compared to explorers with no clear sight of production. Richard is highly experienced in this field, has already turned the company around and has an obvious plan to grow this company. Whether things are good or bad, he is someone who tells things as they are, no fluffing and straight to the point as can be seen through his announcements. He is a big shareholder of the company and so far has done everything right to grow shareholder value.
The company is in an enviable position, it is already producing cash flow, paying down debt and focusing on exploring areas near the plant to extend mine life beyond the 70,000 to 80,000 ounces p.a. for the next 3 years at least. No need to raise capital and dilute shareholders, unless possibly if there's an attractive nearby asset to purchase (and is extremely expensive), in which case would be highly accretive anyway.
I believe these are rock bottom prices and now is a great time to buy in or add to existing positions. Market cap is now at plant value only which shows significant upside from here. It's a bit unfortunate to have today's news released on a down day for gold stocks, only amplified the sell off. We already have the plant and operational facilities in place, so extension of resources/life mine will see this multibag from here. If we could increase production ounces per year and triple the mine life we could be valued at a $1bn market cap which is 10x from here for patient investors. CMM is a good example, valued at $700m, 105-120koz p.a.,12-year mine life, and hasn't even started production yet. Gold prices are going up and my long term view is that it will continue going up, margins will become insane and investment in gold producers is a highly leveraged play to capitalise on this.
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