TXG vs NES
In another great post from taylor on SH he underscores the great value NES represents vs Torex at current valuations.
in relative terms with TXG trading at 2.05 NES should be trading darn near 8 dollars a share..
reposted form stockhouse
Torex trades at $160 / oz valuation based on their enterprise value while NES trades for $55 / oz based on their enterprise valuation currently.
TXG has an open-pit an underground deposit capable of producing over 250,000 ounces of gold per year at 3.0 g/t au while NES has the potential for an open-pit deposit with a very high-grade starter pit (2.5 – 3.5 g/t au near surface) and production of 250,000 – 350,000 ounces per year potential.
The only significant difference between TXG and NES currently is their difference along the development stage. TXG has a 43-101, a Feasability study on the way and plan to produce gold by 2014. NES is working on a 43-101 for end of Q1, is working on metallurgy with PEA to follow I’m sure and is just over a year behind TXG.
In terms of ounces found I would say that’s a different story. Currently I think the minimum ounces NES has on their deposit (not what will be reported on the 43-101) is 6.5 – 9 million ounces. This is substantially higher than TXG’s current 3.6 million ounces they are trying to upgrade to 5 million ounces this quarter.
There’s a minimum of 3.0 million ounces gold equivalent in the low-grade with another 3.0 million ounces in the breccia and now a new discovery 1 km southwest with potential for 250,000 – 2,000,000 ounces of gold when all is said and done. I wouldn’t call the new discovery a fluke and I really like the last results that show further continuity at similar grades as this geological team has done it before.
If I had to place my bets on the GGB and Mexico I’d certainly do so on NES with a $320~ million enterprise value vs. TXG’s $825~ million enterprise value and Goldcorp’s $35~ + billion market cap.
Goldcorp holds 10 + million ounces, TXG holds 5~ million ounces (post 43-101) and NES has the potential to hold 6-9 million ounces and this is on one portion of one property of their 89,000* (new acquisition) hectares.
The geological team that NES is blessed with already has discoveries under their belt on the Guerrero Gold Belt so I certainly like the pace they’re moving at with 2 discoveries (breccia January 2011), (step-out January 2012) in under one year thus far!
Thanks again to a great team (Newstrike) for avoiding dilution and progressing things so quickly!!
I can sleep well at night knowing everyday that goes by another hole is being punched in virgin ground southwest of the main Ana Paula deposit that could lead to much more attention on this seemingly thin traded on 90% of trading days.
