11.3 Million oz of gold * $1200 per oz= $13.5 Billion in proven and probable reserves. There's also the measured and indicated resources, or the inferred resources to factor into the value of the mines.
$213 Million in net cash.
Current market cap = 1.4B??? lol
Either the stock price corrects, or there will be a suitor with an offer of at least twice current market cap.
Gold is certainly a majical metal. However, I have yet to see it jump out of the ground and assemble itself into gold bars. It doesn't swim well either.
Decreased production, decreased pricing, increasing operating costs.
Government doesn't care what it costs you, they want their cut.
your 1.4B market cap is going to be a lot less.
one more point, decreased production and increased operating costs don't go hand in hand. Many believe, and I'm in the camp, that the miners can reduce operating costs to maintain profitability. Yes, there was a time when the lobbyists had everyone convinced that operating costs justified the amazing run in spot price. Well, we all know that wasn't exactly true. So the same thing applies here. It's not exactly true that they aren't able to reduce costs to stay profitable even if the price of spot gold drops to 1000.
It's not like i don't understand all that.
It's just that those discounts have to be considered "baked in" at some point. And, judging by the 85% correction in IAG's price, to levels not seen since 2008 when Gold was at 800 p/oz. I'd say we have over baked it. The fear mongering can only last so long before it gets ridiculous.