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Rider, it's a bank holiday in the UK so the market is closed.
Nero, you could also argue that gold has gone up $1000 per Oz from the numbers used in the PEA.
Agree that it's good to see M&A hotting up. How much longer till this RNS drops!
Appreciate your thoughts Nero on this deal? Good? Bad?
The operating mine is set to produce approx 83-95,000 Oz gold this year with AISC around $1625.
They are also buying the La Arena II project, this is probably the main reason. NPV over $800m using gold at $1300. See the link.
https://www.newswire.ca/news-releases/tahoe-announces-results-of-la-arena-ii-preliminary-economic-assessment-674641073.html
DDD, are you on holiday mode again? Market closed tomorrow as it's a bank holiday. I agree that the SP likely rose due to the article rather than anything else.
Https://youtu.be/gbJkDNE5idY?si=XB0fGBxCfZ0mVto7
Another good video to watch about the mining space and M&A. Interest building in the mining space. We surely can't be far away. Hold onto those golden tickets.
Any reply Surrey?
Damn it!
I've given up trying to predict the timing of the RNS.
Dummy buy 35.9p.
Dummy sell 34.31p this morning. Could be the perfect storm! News could drop anyday now and those just getting on board might as well hold on until that RNS finally drops.
There has always been a disconnect in the sp between aim and the tsx so I wouldn't read too much into it. Nice rise today, I personally think it's 100% due to the undervalued shares pump on Friday afternoon. It happened last time. Let's just hope this time these buyers hold on for another 1-2 months rather than take a quick 10-20%. I'm holding onto my golden tickets.
Https://ceo.ca/@globenewswire/equinox-gold-consolidates-ownership-of-the-greenstone
Equinox already own 60% and just bought the remaining 40% for nearly $1bn. Yes, it's tier 1 in Canada, will be producing 400,000oz a year for 14 years but effectively spent $1bn for 160,000oz.
Rider, any idea how many people subscribe to his content?
The flurry of buys Friday afternoon is more than likely to the release of that blog post. We saw that with his last posting about us.
Well, the NPV at $2000 is $628m and at $2200 it is $769m so you can calculate any %. Personally, I can't see the project going for above 50% NPV based only on jurisdiction but I could be wrong. We have de-risked the project as much as feasibly possible other than the last 0.4% of the land.
I'd take 25% NPV at $2000 gold.
I would say somewhere around $900m. This is simply looking at the difference between the NPV numbers at $2000 and at $2,200 and the madding the difference to the NPV at $2,200.
Https://m.youtube.com/watch?v=qobUwba0uIQ
Good listen around M&A action in the mining sector. I do wonder whether the sudden rise in POG will put more pressure on the buyer to do a deal quicker before the value of our asset gets more and more profitable.
Even better are the numbers from the PEA in 2021 based on 150,000 Oz per annum including the feeder pits. At $2,200 gold, the NPV is USD$769m and 87% IRR.
Ilka, unfortunately that is not the way to value gold companies.
DDD, don't forget the $60m USD gold prepayment they have agreed.
https://calibremining.com/news/calibre-enters-pre-commissioning-and-commissioning-8155/
They have already received $40m USD and the remaining $20m USD arrives 15th April. Is it just coincidence the timing of the prepayment and financing are both within a few days of each other?
Time will tell!