I have been posting in other gold mining stock pages and recently I noticed there is renewed interest in Alacer Gold from some of the seasoned investors and traders. So I decided to have a look.
I would like some more insights into why Alacer Gold has spent over $500m in developing their Copler Sulfide project that is expecting to produce around 150-175koz p.a. with low cost of US$700/oz or A$920/oz. Perhaps I am missing something here, since that amount of capex is equal to their current market cap. I have seen companies purchase mines that produce that much gold for a fraction of the amount they have spent.
I am curious and receptive to hearing from the veterans about this gold mining company. Think of it as helping out a fellow investor get their head around this. I have only looked at their 2018 Q1 results and the RBC presentation. Those do not contain the ore reserves information.
At this stage, I am working to do a cross-sectional study of some ASX-listed gold mining companies and their values based on their production, resources and reserves. So, you will hear more from me in due time.
Thank you for your time and happy investing!
AQG Price at posting:
$2.46 Sentiment: None Disclosure: Not Held
