The last time we looked at Exeter (XRC.to) (XRA) was June 26th, its market cap was $155m and your humble scribe in his everso humble way said…
“The plain bottom line about gold mining is that if a deposit cannot be
mined at a profit it doesn’t matter whether it’s in Chile, China or
Congo and it doesn’t matter if it is 1m oz or 100m oz gold contained.
It’s worth nothing. Zero, zip, squat, nada, nothing. As regards XRC,
Yale Simpson’s opinion is that (and I quote the NR) “...the current depressed share price does not reflect the potential future value of the Caspiche deposit...”
and he would say that, wouldn’t he? But it’s an opinion, not some sort
of objective truth so let’s throw in another opinion to get a bit of
balance. My opinion is that XRC has $61m in cash and a market cap of
$155.3m today, which means it’s still overvalued by around $94.3m.”
Today XRC is down to $119m, so it’s gone a few kms down the road so far without getting to its destination. But hey, this is only my opinion of course and there are others out there that differ. Such as Wendell Zerb of The Can of Corn who says:
Wendell Zerb, Canaccord Genuity
(1/18/12) “Exeter Resource Corp. has released the prefeasibility study
for its 100%-owned Caspiche Au-Cu-Ag project, with results as expected.
We maintain our Speculative Buy rating and 12-month CA$9.35 target
price. . .Exeter’s Caspiche deposit remains one of the most significant
new Au-Cu-Ag discoveries in the last decade; located in the Maricunga
belt in Chile and adjacent to Barrick’s Cerro Casale and Kinross’
Maricunga (Refugio) deposits, Caspiche is well located as this prolific
district expands. . .we continue to value Exeter on metrics related to
it ultimately being acquired.”
Which is their prerogative. I mean, just look at that sexy bigtime M&A anticipation since Jan 18th, Z-man:
dyodd, dude