Research - £50m Valuation v £3m cap2 Oct 2018 10:03
There was a broker note that came out on CGNR last month that values them at £20m or 84p per share. Based on increasing the resource and grade average that would increase to $80m or £50m which is 210p a share.
www.conroygoldandnaturalresources.com/sites/default/files/Conroy%20Gold-Initiation%20Report%202018%20FINAL.pdf
The shares are currently 11.45p to buy in the market. Be interested in knowing how many you can buy online ?
CGNR already has a 517,000 JORC gold resource. At the current gold price of $1200 that is worth $620 million in the ground. Call it £400m.
They are targeting 8.8m ounces.
www.conroygoldandnaturalresources.com/sites/default/files/Conroy%20Gold%20Presentation%20Sept%202018.pdf
The share price will rise again in my honest opinion and when it does the market makers will play their game of not letting you buy no doubt. I have tried buying the past around 30p and the market makers had no shares and would only sell you 100 shares at a time. that was earlier in the year.You can buy in around 15-20% cheaper than everyone else now including the most recent placees. OMI was unloved at under 2p not long ago and now everyone wants them at over 10p now. Best to get in early to these types of opportunties imho.
Gold will always be seen as a safe place for money and I expect that to become even more popular going forwards.
There has been a recent takeover in Ireland also with Orion buying Dalradian Resources for $437m, £262m. That was for 6m ounces of gold. Remember CGNR are targeting 8.8m ounces.
That Dalradian takeover values each oz of gold in the ground at £43. If you applied that figure to CGNR's current 517,000 resource that would be £22m now. That is nearly 100p per share right now per CGNR share on a price paid for another miner up the road in the same industry and same country. Can we not read across from this ?
www.proactiveinvestors.co.uk/companies/news/199306/dalradian-resources-agrees-c437mln-takeover-by-private-equity-firm-199306.html
There was meant to be some news coming out before end of September on drill results which have been positive so far, but that has now been moved and some are speculating on twitter whether there is some bigger news coming ? I for one hope for a bigger player to get inolved with CGNR. that Dalradian takeover must surely have brought CGNR to the attention and eye of some mid cap gold explorers and producers considering the potential and derisory current sub £3m market cap of CGNR ?
CGNR has been a serial disappointer in the past but most shares where you get the best returns have as everyone else has given up on them. We will see. I will keep buying some here and there. Chart looks good to me for a bounce.
Anyway, do your own research and invest at your own risk.
NAI/DYOR
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