and market cap of $154 million equates to about 5 bucks an ounce of gold in the ground. What a tragedy! Its not Exeter's fault - don't underestimate market trend/forces.
strong possibility that pps will drop in low 1's or even under a buck.
No one is going to buy XRA for the super pit mine in the next 5 years. Five billion dollar mines are not going to happen in this time period. There is enough in development all over the world.
Gold prices are probably going to rise 100% over the $1600 range of the last year or two, but that is going to take 5-10 years in my opinion, probably 10 years is more realistic.
That is when you might see a mine on the XRA site. The question is can XRA keep its mining rights for 5-10 years or will they have them expire if they do not start mining by 2015.
I have taken a beating in this stock over the last couple of years and am not very optimistic.
$4.8 billion sounds like the right number. I just do not see any other miner willing to sink that much money into this company even if they could buy it for a mere $500 million which is very possible. Too many unknowns exist and there are so many other gold mines where it would not cost so much to get to production.
I was wrong, for the Oxide deposit near the surface, the initial CAPEX is $336 MM and will produce revenues estimated at $1.2 - $1.9 Blln depending on gold price over 3 - 4 years (i had the revenue number floating around my head when i previously referred to $1.9 Blln as starting costs). The total CAPEX for the super pit will be $4.8 Blln (not all at once). Per PFS.
You say higher gold prices. I am not sure what higher gold prices mean. Right now gold is struggling to hold $1620 and gold has been struggling now for a year. I am not that certain we will see higher gold prices and if we do it would require significantly higher gold prices to do XRA any good and bring about any interest. Certainly gold at $1800-1900 is not going to do it. Yeah they have the resources of rather poor quality and very expensive to mine. If it was any other way there would have been a fair amount of interest by now by larger miners.
Appreciate the info....Not much difference in cost/similar mines...The Caveat is XRA has more resources yet not enough cash to develop the mine and too much needed for financing for private placements or additional public offerings.
So, higher gold prices..Your thoughts ?
Quite frankly I did not calculate anything. Those that have written articles in regards to this mine and and Chile’s El Morro copper-and-gold deposit have made comparisons between the two. It has been said that Goldcorp will have about $3.9 billion into El Morro and it will cost more to get to production for XRA's mine but they have more resources. None of this is a big secret. If anyone thinks for one minute that anything close to $1 billion will get production started is dreaming.
Have you read anything at all? If they could go to production by spending $1.9 billion, (Which they do hot have) some large miner would have gobbled this miner up a long time ago. That is just so much BS and you know it. It will take several billion to get this miner producing on a regular basis and that is why the larger miners have no interest.