So here are a few thoughts
We are currently trading at a very hefty discount to our NPV, i can't explain why but that means that there is an opportunity for a large re-rate. People might say that this is a boring stock and i agree to a certain extent ...BUT... A boring/safe stock should mean that the discount is in line with valuation like x% of NPV in this case, but this is not the case as has been shown by PhotonicsGuy
People worry waaaay too much about equity issue, that is a non issue in this case, why? well a good metric to use is debt to equity ratio of 60/40, that would mean around 14m more shares issued at the current price or ~5% increase in outstanding shares to open up a mine... that is NOTHING in the greater scheme of things. Look at the big deposits that juniors hold in south America, CAPEX in the billions but mCap in millions (not many over $150m), a debt to equity of 60/40 annihilates shareholders which is why their only option is to give away >75% to a major ... which leaves them in a bad bargaining spot consider how many potential juniors have projects in chile ...
MIN is unique when it comes to initial CAPEX due to the Johnson Camp option, they paid pennies on the dollar for a MASSIVE 84% decrease in inital CAPEX by being smart. If you compare this to a larger hard rock mining option it simply cannot be done because the initial CAPEX for equipment, power and infrastructure is simply to great to allow the option for a tight and small ramp up operation. Access to capital will not be an option for the initial CAPEX which is where soooo many mining projects fail, if they get that far. MIN traded at 23c back then which was complete madness, people who bought then (i know i did) are most likely sitting on their shares today knowing that the market still has not caught up to the case. sure, 1000% is not likely from this point, but 200% still means a discount to NPV, especially if you assume higher copper prices than $2,75/lbs!
People who are waiting on the sidelines trying to get it cheaper should just look at what discount is applied to the NPV and ask themselves if it is fair or not considering that we are not talking about a 2 years construction, we are talking about operating starting next year! look at the zinc market, people throwing money at all the juniors because zinc is up today, ignoring the fact that some have years left for a PFS/FS to be completed ... zinc is not going to go up forever. Excelsior is in a good position to take advantage of rising prices as early as next year
I could go on and on about the case and why i find most other juniors just .... boring.... compared to excelsior!
