the stars are aligning for atlantic gold

The March quarterly reads well and of particular interest were the comments regarding the economics of touquoy which with the rising gold price keeps getting better and better.
With the strengthening A$ the project cost has reduced from A$136 million to A$118 million and an increase in NPV from A$88 million to A$152 million, IRR has increased from 32% to 50% and net cash surplus from A164 million to A$250 million.

There have been substantial delays in bringing Touquoy to fruition but this has worked out in Atlantic Golds favour because the rapidly increasing gold price means the longer mining is delayed the greater the value of the gold.

Gold is going to the moon and in the words of Jim Sinclair the premiere gold guru, gold in the ground is where its at because as gold goes higher and higher the gold in the ground becomes worth more and more and in the not to distant future when investors wake up they will be valuing gold stocks on the value of the gold they have in the ground rather than whether they are currently producing gold.
As of today the value in the ground of 1,205,000 ozs is A$1.72 Million and the market cap of ATV is approximately A$22 Million.

It appears that finally Ron and Wally have realised the importance of gold exploration as opposed to just focusing on bringing Touquoy into production and how the true wealth will be generated by Wally finding millions of ozs of gold in the Meguma and a delay in production now just means they can produce the gold and receive ever increasing prices for that gold in the years ahead.
If Touquoy doesn't get into production for 18 months that should be considered no big deal as gold is likely to be over $2000 by that time.

In that time if Wally has a few million to spend on exploration in the Meguma there is a real chance he could find a million ozs or more on top of what they already have and that should certainly ignite the share price.

The share price is insanely undervalued but also an opportunity for investors to get set at firesale prices.

When the public finally wakes up, the price of quality gold stocks with superior exploration projects and proven management are going to go to the moon.