Oh please. Brio alone will bring in $50M of GP annually. At a 10x that is 25% of AUY's current cap. They are ahead on debt repayment. As long as gold stays above $800 they will remain so. SO I ask again, since AUY is pricing for $700 gold, why isn't gold $700?
"Accordingly, Beijing has given the green light for the Shanghai Gold Exchange (SGE) to establish gold-fixing to be denominated in China's RMB currency by the end of the year, while offshore investors can open gold accounts in the Shanghai Free Trade Zone this September."
17 July 2015 CCTV
And from Reuters: "U.S. inflation in the first half of the year was probably "markedly lower" than reported, but policymakers are unlikely to set interest rates incorrectly as a result, according to an analysis published Monday by the San Francisco Federal Reserve Bank."
I've seen some tap dancing in my time but we must be in the semi-finals or something!
So if we're a week ahead of the Fed on this little ol' message board, I wonder how far down the line the big fish are already playing this like a violin
10:1 downside action, less than 1:1 upside on gold price movement
Looks like market agrees. Nice support on AUY back to $2.30 quickly there! Not sure another shot at $2.15 is coming any time soon...
Looks like gold might be the preservation of capital play, no appreciation. Expected a gap up this morning, not flat.
The problem, as I mentioned, is that for a $100M valuation MJNA issued a near 2:1 stock dilution for a company that listed $1.5M in assets, mostly inventory, and lost $100,000. Is that worth $100,000,000 and a 2:1 dilution? Just look at the balance sheet under Kannaway. It is worth less than a fraction of a penny of MJNA stock.
It's difficult to imagine any listing that doesn't favorably dividend back much of this cash machine right to AUY's bottom line.
Need to see how it lists first and what market cap it can achieve. I figure with a 130000oz production in the 700s then we're looking at a miner pulling in over $50M of profits annually at 50% margins off $143M revs based on gold 1100. At a 10x earnings Brio represents a substantial portion of AUY's current valuation.