$GUYFF : Guyana Goldfields — The Big Revaluation

Long-Term Price Case$1,500/oz.
Flagship ProjectAurora
Resource Base (M&I, Inclusive of Reserves)4,285,580 ozs.
Fully-Diluted Shares 177,549,145
Fully-Diluted Market Cap$118,957,927
DebtNil
Cash$36M
Recovery90.5%
Average Annual Production146,400 ozs.
AISC$1,225
Cost Structure92%
Strip Ratio10.9:1
Cash Flow$15,811,200
Future Cash Flow$40,260,000
Market Cap Valuation per Resource Ounce$28
Share Price Valuation by Resources in the Ground.02 ozs. ($32)
Resource Valuation as a Percentage of Market Cap2%
Market Cap Valuation$856,901,721
Cash Flow Multiple8x
Future Market Cap$964,255,500
Future Market Cap Growth711%
PMCV15 (Projected Market Cap Valuation at 15%)$5.43/sh.

Notes: All Values in U.S. Dollars

Guyana Goldfields has a terrible Cost Structure and industry-lagging strip ratio, but is still managing to eek out some cash flow. At higher gold prices, this will improve. The company’s current Market Cap is valued at roughly 2% of its in-ground resources, which suggests shares are considerably undervalued in spite of adversity at Aurora.

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