Overpay ? can't say 10c is over paying maybe 30c+ could be seen as over paying
but as it stands PXG has JORC near surface easy milling 1.1moz Gold reserve.. the bulk of these reserves are average grade of 1.7g/t ...
Current AUS Gold $1540oz ..... 1,100,000 x $100 per reserve oz =110mill IMHO that would be a fair value yet we are being offers less than half that ...(understandable with recent mining grade woes still Zuleika project covers than negative IMHO)
back in the late 90's early 00's M&A was very hot in the Gold sector with many Predators paying upto the Gold price per reserve oz at the time to secure new mines etc (many of these come with plants of course)
Now If Zijin don't see the value why not continue as planned with EVN and give Zijin the cold shoulder ...
Going forward AUD Gold looks good mid-longer term $2000oz+(hows good is PXG 1-2moz+ reserves in the heart of the W.A gold fields going be at that price)
Costs have come down thanks to I.O / coal etc sectors laying of huge numbers
of trained staff ..going be good time to ramp up a new mining operation and continue to explore with lower drill rig costs ..
End of the Day there is no need for PXG to be T/O unless it's at a premium
why bent over for 10c-11c etc
this time next year after we have drilled out the Zuleika shear and discovered
a higher grade monster then yeah bring on a T/O
PXG Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
