{"id":1650,"date":"2025-06-18T01:52:06","date_gmt":"2025-06-18T05:52:06","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=1650"},"modified":"2025-06-18T01:52:07","modified_gmt":"2025-06-18T05:52:07","slug":"you-reach-full-npv-by-developing-a-mine","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/you-reach-full-npv-by-developing-a-mine\/","title":{"rendered":"You Reach Full NPV By Developing a Mine"},"content":{"rendered":"\n<p><span style=\"font-size:14px;\"><span style=\"font-family:Tahoma,Geneva,sans-serif;\">Companies that <span style=\"color:#27ae60;\"><strong>successfully develop<\/strong><\/span> a <span style=\"color:#f1c40f;\"><strong>gold mine<\/strong><\/span> and bring it into <span style=\"color:#27ae60;\"><strong>production<\/strong><\/span> trade for the full <strong>net present value<\/strong> of the mine.<\/span><\/span><\/p>\n\n<p><span style=\"font-size:14px;\"><span style=\"font-family:Tahoma,Geneva,sans-serif;\">The <span style=\"color:#e74c3c;\"><strong>biggest risk<\/strong><\/span> factors are always: 1) <strong>permitting<\/strong> and 2) <strong>financing<\/strong>.<\/span><\/span><\/p>\n\n<p><span style=\"font-size:14px;\"><span style=\"font-family:Tahoma,Geneva,sans-serif;\"><strong>Augusta Gold (TSX: G)&#8217;s Reward<\/strong> has current NPV at <strong>$3,390 per oz<\/strong><span style=\"color:#f1c40f;\"><strong> gold<\/strong><\/span> of <strong>US$308.07 million<\/strong>, which minus the outstanding debt values <strong>G<\/strong> at <strong>$4.42 per share<\/strong>.<\/span><\/span><\/p>\n\n<p><span style=\"font-size:14px;\"><span style=\"font-family:Tahoma,Geneva,sans-serif;\"><strong>Reward<\/strong> is already <span style=\"color:#2980b9;\"><strong>fully permitted<\/strong><\/span>. If <strong>Augusta <span style=\"color:#27ae60;\">successfully<\/span> <span style=\"color:#2980b9;\">completes<\/span><\/strong> the deal with the <strong>Trump Administration<\/strong> and the <strong>other <span style=\"color:#e74c3c;\">non-dilutive<\/span> financing<\/strong> they are working on it will be revalued to <strong>$4.42 per share<\/strong> not including any additional value for the <strong>Bullfrog Gold Project<\/strong>, which is <span style=\"color:#27ae60;\"><strong>3.5x larger<\/strong><\/span> and located a few km away. Including <strong>Bullfrog<\/strong>, it will be worth <strong>$10-$15 per share<\/strong>.<\/span><\/span><\/p>\n\n<p><span style=\"font-size:14px;\"><span style=\"font-family:Tahoma,Geneva,sans-serif;\"><strong>AngloGold Ashanti (AU)<\/strong> desperately wants to <strong><span style=\"color:#27ae60;\">acquire<\/span> Augusta Gold (TSX: G)<\/strong> for both <strong>Reward<\/strong> and <strong>Bullfrog<\/strong>, but they can&#8217;t at current share prices because the premium will be too large and they will look bad to their shareholders. Getting the <span style=\"color:#27ae60;\"><strong>$50 million<\/strong><\/span> from <strong>Trump<\/strong> is exactly what is needed to get the ball rolling so share price is revalued to <strong>$3-$5<\/strong> and <span style=\"color:#27ae60;\"><strong>buyout<\/strong><\/span> can then take place.<\/span><\/span><\/p>\n\n<p><span style=\"font-size:14px;\"><span style=\"font-family:Tahoma,Geneva,sans-serif;\"><em>Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA&rsquo;s President has purchased 232,200 shares of G and may purchase more shares. This message is meant for informational and educational purposes only and does not provide investment advice.<\/em><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Companies that successfully develop a gold mine and bring it into production trade for the full net present value of the mine. The biggest risk factors are always: 1) permitting and 2) financing. Augusta Gold (TSX: G)&#8217;s Reward has current NPV at $3,390 per oz gold of US$308.07 million, which minus the outstanding debt values [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[42,12,9],"class_list":["post-1650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-au","tag-g","tag-gold"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/1650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=1650"}],"version-history":[{"count":1,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/1650\/revisions"}],"predecessor-version":[{"id":1652,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/1650\/revisions\/1652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/1651"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=1650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=1650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=1650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}