Junior Cordoba resource valuation
Recent news release Cordoba reported their assay grade which is the highest seen.
” Initial inferred resources at Alacran are 53.5 million tonnes of 0.70% copper and 0.37 g/t gold.”
“ACD036:
0.90 meters (m) @ 4,440 g/t gold (Au) + 10.25% copper (Cu) + 24.70% zinc (Zn) + 347 g/t silver (Ag)”
Disregarding CU from the calculation gold grade number is very attractive.
0.37g/t X 53.5 m tons X .85 (recovery)/31.1g per oz= 541,000 oz of gold
Gold price at 1200. Market for this gold is 540,000 X 1200= $640,000,000.
Cordoba outstanding share = 64,000,000 and share price is $USD 0.90
Cordoba Market cap = 64,000,000 X0.90= USD $ 57 mil.
Per indicated resources valued at $640 mil and Market cap only $57 mil stock has lot higher to run. One is getting underground gold for $105/oz.
So currently resources are being priced higher from $10 to $105/oz.
For similar case in the past valuations were topped out around $150/oz unless resources were expanded.
Any 1st tier exploration company starting today and develops their resources to this level one can expect valuations close to this level.
Thanks to one of your earlier post, I dove in and am already up 50%. Hope I can return the favor some day.
Thanks to Goldtent for us to share our trades here.
I am glade.