There's been some questions in this thread surrounding valuation...

There's been some questions in this thread surrounding valuation of EXU and the cost of bringing a circa 1moz deposit or - 100koz pa into production. Here are some interesting comments from an RBC analyst yesterday talking about the next wave of M&A activity in the gold sector;

RBC sees the gold price consistently sitting at $1,250/oz price as a requirement for most of the projects currently in the pipeline, with construction costs estimated at $230 million for a mine producing 100,000ozpa, or $170/oz per life of mine ounce produced. That is well below the cost to buy companies with producing assets, which has risen sharply since 2014 as gold stocks have recovered and topped $400/oz per ounce produced last year.
“With the increase in gold equity valuations over the past year, the cost to buy companies with producing assets has diverged significantly from the cost to build new projects, which makes sense given the execution risk to build a project,” they said.