company value

New thread time.

I would very much like to hear why a company like PXG will not be re-rated shortly based on its stated JORC resource.

Here is my argument, hope to hear others (for and against):



This is an oldie but a goodie, taken from an old presentation by (I think) Newmont, many years ago. I would argue that PXG is closer to the right hand side of the graph than many believe, as they have a ready source of oxide ore and toll treatment in the vicinity. Any statement regarding production will be noticed.

Depth and grade - are average at best. Not a real problem, as I am looking for a re-rate to an average EV/oz.

Current EV/oz is about $10. If you take just the measured and indicated, then EV is $40/oz. So you could argue that $40/oz is a fair rating for a company at this stage of devt.
- so I am looking for, not only the assumed increase from 1M to 1.5M, but also drilling to increase measured and indicated categories.

Infrastructure - close by, a positive.

Location, political risks, etc - positive.

Exploration potential, ability to increase JORC - here I think is the real upside. I think that a lot of people have written off these locations as just a bunch of old stockpiles. There is real potential as a lot of the tenements are unexplored at depth, and open along strike - the magic words.

Another recent broker report for CVY listed selected gold companies and gave averages of $160/oz for total JORC, and $220/oz for measured/indicated JORC. I think that is a bit high, and certainly a high-end target for PXG at this stage.

Other searches indicate median figures of $100/oz for a gold producer, and $40/oz for a gold explorer. As stated above PXG could be producing much quicker than many think; regardless $40/oz is an achievable target.

$40/oz @ 1M ozs is undiluted $0.50 /share approximately. I don't think that's unreasonable by any stretch. That's why I'm in.

Good luck all.