Posted On: 04/29/2016 7:15:54 AM
Post# of 9903
In this post I will revaluate Cinco Minas/Gran Cabrera according to the press release from SRGE on December 26th 2012.
http://www.prnewswire.com/news-releases/south...06901.html
SRGE valued Cinco Minas/Gran Cabrera between 550/600 million $ in this press release. I will calculate how much Cinco Minas/Gran Cabrera is worth now (April 28th 2016) compared to then (December 26th 2012) according to SRGE's press release. And remember, this price would be just for the Cinco Minas/Gran Cabrera mines, not the other mines El Horconcito etc. which we all own as SRGE/MSJ shareholders.
Price of gold December 26th 2012: 1657.70 $
Price of silver December 26th 2012: 30.01 $
Cinco Minas December 26th 2012:
Estimated gold:112,187 x 5(assumed with 100% ore tested) x 1657.70 $=929,861,950 $
Estimated silver:14,319,064 x 5(assumed with 100% ore tested) X 30,01 $=2,148,575,553 $
Total worth Cinco Minas: 3,078,437,503 $
Gran Cabrera December 26th 2012:
Estimated gold: 212,223 x 1657.70 $=351,802,067 $
Estimated silver:106,363,224 x 30,01 $
,191,960,352 $
Total worth Gran Cabrera: 3,543,762,419 $
Total worth Cinco Minas + Gran Cabrera = 6,622,199,922 $
Total worth Cinco Minas + Gran Cabrera SRGE press release: 550,000,000 $
Total worth Cinco Minas + Gran Cabrera:Total worth Cinco Minas + Gran Cabrera SRGE press release = 12,04 : 1
Cinco Minas April 28th 2016:
Estimated gold:112,187 x 5(assumed with 100% ore tested) x 1266.40 $= 710,368,084 $
Estimated silver:14,319,064 x 5(assumed with 100% ore tested) X 17,53 $=1,255,065,959.6 $
Total worth Cinco Minas: 1,965,434,044 $
Gran Cabrera April 28th 2016:
Estimated gold: 212,223 x 1266.40 $=268,759,207 $
Estimated silver:106,363,224 x 17,53 $=1,864,547,317 $
Total worth Gran Cabrera: 2,133,306,524 $
Total worth Cinco Minas + Gran Cabrera = 4,098,740,568 $
If we use the same number 12,04 we get a price value just like SRGE stated
in their press release on December 26th 2012 for Cinco Minas + Gran Cabrera as of April 28th 2016:
4,098,740,568 / 12,04 = 340,426,957 $
I will use the worst case scenario of 1.5 billion outstanding SRGE shares in this example to calculate the SRGE share price. The SRGE share price would be 340,426,957 $ / 1,500,000,000 shares = 0,23 $
So, even with a worst case scenario of 1.5 billion outstanding SRGE shares and a sale of Cinco Minas/Gran Cabrera mines on April 28th 2016 to a senior miner, I still get a SRGE share price above 20 cents and it's still multiple pennies. And of course, as gold and silver go up in price, the SRGE share price accordingly will go up as well. The longer the senior miners wait, the more they will pay for these mines as gold/silver is recovering and going back up. By now, the senior miners must be aware that the most advanced mining project in Mexico held by an exploration company SRGE and now MSJ is up for sale/jv.
http://www.prnewswire.com/news-releases/south...06901.html
SRGE valued Cinco Minas/Gran Cabrera between 550/600 million $ in this press release. I will calculate how much Cinco Minas/Gran Cabrera is worth now (April 28th 2016) compared to then (December 26th 2012) according to SRGE's press release. And remember, this price would be just for the Cinco Minas/Gran Cabrera mines, not the other mines El Horconcito etc. which we all own as SRGE/MSJ shareholders.
Price of gold December 26th 2012: 1657.70 $
Price of silver December 26th 2012: 30.01 $
Cinco Minas December 26th 2012:
Estimated gold:112,187 x 5(assumed with 100% ore tested) x 1657.70 $=929,861,950 $
Estimated silver:14,319,064 x 5(assumed with 100% ore tested) X 30,01 $=2,148,575,553 $
Total worth Cinco Minas: 3,078,437,503 $
Gran Cabrera December 26th 2012:
Estimated gold: 212,223 x 1657.70 $=351,802,067 $
Estimated silver:106,363,224 x 30,01 $
,191,960,352 $ Total worth Gran Cabrera: 3,543,762,419 $
Total worth Cinco Minas + Gran Cabrera = 6,622,199,922 $
Total worth Cinco Minas + Gran Cabrera SRGE press release: 550,000,000 $
Total worth Cinco Minas + Gran Cabrera:Total worth Cinco Minas + Gran Cabrera SRGE press release = 12,04 : 1
Cinco Minas April 28th 2016:
Estimated gold:112,187 x 5(assumed with 100% ore tested) x 1266.40 $= 710,368,084 $
Estimated silver:14,319,064 x 5(assumed with 100% ore tested) X 17,53 $=1,255,065,959.6 $
Total worth Cinco Minas: 1,965,434,044 $
Gran Cabrera April 28th 2016:
Estimated gold: 212,223 x 1266.40 $=268,759,207 $
Estimated silver:106,363,224 x 17,53 $=1,864,547,317 $
Total worth Gran Cabrera: 2,133,306,524 $
Total worth Cinco Minas + Gran Cabrera = 4,098,740,568 $
If we use the same number 12,04 we get a price value just like SRGE stated
in their press release on December 26th 2012 for Cinco Minas + Gran Cabrera as of April 28th 2016:
4,098,740,568 / 12,04 = 340,426,957 $
I will use the worst case scenario of 1.5 billion outstanding SRGE shares in this example to calculate the SRGE share price. The SRGE share price would be 340,426,957 $ / 1,500,000,000 shares = 0,23 $
So, even with a worst case scenario of 1.5 billion outstanding SRGE shares and a sale of Cinco Minas/Gran Cabrera mines on April 28th 2016 to a senior miner, I still get a SRGE share price above 20 cents and it's still multiple pennies. And of course, as gold and silver go up in price, the SRGE share price accordingly will go up as well. The longer the senior miners wait, the more they will pay for these mines as gold/silver is recovering and going back up. By now, the senior miners must be aware that the most advanced mining project in Mexico held by an exploration company SRGE and now MSJ is up for sale/jv.
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