There is 10 years left, in fact they can increase production over 200k/oz in 2018. There are also high grade underground ones such as Cock-eyed bob and Imperial.
If what you assume is true (long low gold price environment) then Daisy can provide a minimum of 75k/oz for 9 years. MYG would never get finance in that environment making the risks higher. If gold goes higher, everything gets turned back on for SLR allowing it to capture higher gold prices quickly.
I doubt a takeover by SLR as they have enough on hand. Maybe a different entity but may require a higher gold price (exceeding 1500$ AUD).
I guess what i am trying to say is for the risks invovled, might as well buy into an established producer as there isn't much difference (when you add enterprise value and future dilution for capex). Short-term punt might be ok but if you intend to hold from now till production the risk reward isn't there.
MYG Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)