The true and fair valuation will ultimately be determined largely by the size of the resource and the financial outcomes from the scoping study.
My target is based on a final resource for current campaign to define a resource of circa 5Moz +. It is still early days, but, I'm backing the Eastern target to more than double the width of the mineralized footprint. I'm backing great results from Toro Gordo & Drone Hill.
I'm using a a fair valuation $EV/Oz of $120-140 which is the going benchmark rate for recent deposit acquisitions. It is a fair, stress tested and feasible rate that isn't influenced on the current POG, because no company EVER used the current spot price for feasibility and valuations purposes. If the other district targets show great potential, I'll add another $60/oz for the upside potential.
Based on the current market cap, they are valued as a company with no more than a 1Moz, which i see as a major mistake.The market sometimes makes mistakes like this and this is where a few can make some money.
Let me demonstrate.
We all know about the high grade central zone. The current footprint of this zone is 67,482m2 and if you apply a conservative conceptual target of 67,482m2 x 180m average depth of mineralization x 2.8 tonalite density x 2.5g/t head grade (not factoring the upside potential of higher grades) that gives you 2.9 Moz for this zone alone and if you discount this target by 30% to be safe, you still end up with target of 2Moz. This does not factor in any of the mineralization outside of this zone. This does not factor the eastern target or Toro Gordo. There is genuine and upside potential staked in my favour of a 5x return based on the current market cap and the odds are heavily stacked my favour. I don't have to wait long, just a few months and we will have the MRE & Scoping Study before transitioning to the final resource & feasibility!
The beauty is, you don't need a bull market to achieve this valuation, as it's a fair valuation. If it was a bull market overshot valuation, they'd be valued at over $1 Bil ! & don't get me wrong, i'd bloody love to be valued at that or higher!!! So maintain your diamond hands brother
It's all up to the team on the field to delivery now & i wish them the best of luck with all future drills i hope we keep on hitting the good stuff!!
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