All told, the market is assigning Jaguar's equity only $20/oz of value for each of Jaguar's 6.5 million ounces. Despite all the company's myriad problems, that is still a seemingly ridiculous valuation. You aren't going to find many other gold miners producing 150,000/oz a year with 27 years of mine life left trading at $20/oz for gold in the ground.
Value Schmalu. The company (CEO/Board--whoever runs the show--my guess it's on autopilot, that's why they they mine through rock that has no gold) has repeatedly shown that they are incapable of running the company. Here are some things that are contrary to the "value play"
1. company has repeatedly fallen short of ore production estimates--VERY far short.
2. the company has repeatedly said they have just finished a quarter of restructuring / getting mining costs down. Result, the costs have skyrocketed.
3. The company has a potential debt load problem.
The real risk now is bankruptcy.
Have you no clue? JAG mining costs are twice that of some of the majors. We need speculative high prices for JAG to move up meaningfully. That said, should be a good/positive day for JAG today.
even though current costs are higher than ave. they are much much less than current spot gold price. as world QE3 comes out, gold will resume uptrend.
the highest cost producers are the ones that stand to gain the most share appreciation and EPS explosion as they have been literally left for dead.