Crunch the NPV of the Caspiche mine according to the NI-43-101 and the PEA then divide by shares outstanding.
And yes, this is a Canadian company so NI-43-101 is totally valid. While I am leery of mining ventures in other countries by foreign operators in general, Chile is rather stable and "friendly" by South American standards. I think the likelihood of nationalization after infrastructure establishment is low.
In contrast Chavez pretended to be a friendly to foreign oil operators there and nationalized foreign corporate oil fields after they had completely built the infrastructure up - roads, refineries, everything.
If you dig more you will notice Kinross and Barrick operating very nearby, 9KM and 11KM north and south in the same PM belt in Chile.
The rub IMO is that while the XRA cash position is strong balance sheet wise they are going to need a half billion to get revenues rolling in my estimations. This is the reality of a major PM project.
There is always a rub Hornice. Nothing is a given in the market. Insiders have plenty of shares and warrants at five bucks if memory serves me correct.
To be fair we were expecting Kinross or Barrick might move in on the Caspiche years ago, but they have not. They might be trying to starve the company out and make them accept a very low ball offer. But even in that case I cannot see anything but an upside valuation from here.
If XRA has to go after this proven gold on its own it is going to take a serious cash infusion that will not produce a ROI until after this major CAPEX comes first.
I am cautiously optimistic here.
When you asked me the other day on the mining DD board which micros/junior I felt had a favorable valuation I mentioned XRA, but honestly I did not expect you to do any DD - Did not think you value my opinion much based on NBRI discussions. I am glad to see I was wrong sir. Hopefully you can understand my skepticism all things considered.
I had to clip my position here years ago when things went south market wise to protect my IRA from exposure. I bought back a 5% stake overall when the pps hit .50 and still holding those.
Best wishes and happy to offer insight but my DD is a bit rusty here admittedly.
