Legendary Eric Sprott Owned 28% with 25 Baggers!

Freegold Ventures Overview (Golden Summit Project – Alaska):

• Location: 20 miles from Fairbanks, accessible via paved road.
• Project: Golden Summit – 20 million oz gold at 0.9 gpt.
• Key Drill Hole: 257 meters @ 2.9 gpt (2020).
• Market Cap: Rose from $16M to $268M after 2020 drill results.
• Nearby Mine: Kinross Fort Knox (5 miles away, similar geology, mill infrastructure usable).
• Eric Sprott Ownership: 29%. Strong hands not looking to sell early.
• Potential Value: $75–$150 per oz is likely for a sale. Could be worth $2–$3B at $3,000 gold.

Updated PEA (Expected 2024):

• Old PEA (2016): Based on 3M oz. 100,000 oz/year for 24 years.
  • Phase 1 Capex: $88M for heap leach.
  • Phase 2 Capex: $350M for mill.
  • IRR: 20% at $1300 gold.
  • Cash Costs: $850/oz.
• Expected New PEA:
  • Production Target: 500,000 oz/year.
  • AISC: ~$1400/oz.
  • All-in Cost: ~$1700/oz.
  • Gold Price Used: $3,000/oz.
  • Free Cash Flow: $650M/year.
  • Valuation (15x FCF): ~$10 billion (after construction).

Timeline & Exit Strategy:

• Permitting: ~5 years → Construction in 2029.
• Exit Potential: Likely buyout once gold hits $3,000/oz and M&A accelerates (2025–2026).
• Buyout Estimate: ~$2–3B likely.

Additional Project – Shorty Creek (25,000 acres):

• Discovery Hole: 434 meters @ 0.36% Cu with silver, gold, tungsten offsets.

Key Points:

• Near perfect fit for Fort Knox replacement.
• Proximity to majors like Kinross, Barrick, Northern Star.
• High takeover potential with future gold bull market.

The potential stock price of FreeGold Ventures (FVL) under the assumptions:

• Gold = $4,000/oz
• Silver = $100/oz
• Free Cash Flow (FCF) multiple = 20x
• 30M–40M oz gold potential (based on tweet)
• No debt or additional share dilution assumed (for simplicity)
• Outstanding shares: approx. 450 million (as of recent data)

Step 1: Estimate Annual Production & FCF

Let’s assume annual production = 500,000 oz of gold (a reasonable number for a large open-pit mine like Golden Summit).

Revenue

Gold Revenue: 500,000 oz x $4,000 = $2,000,000,000

Assume all-in costs = $1,700/oz Profit per oz = $4,000 - $1,700 = $2,300

Free Cash Flow (FCF):

500,000 oz x $2,300 = $1,150,000,000

Step 2: Apply FCF Multiple (20x)

Estimated Market Cap = FCF x 20 = $1.15B x 20 = $23 billion

Step 3: Calculate Stock Price

Assuming 450 million shares outstanding:

$23B ÷ 450M = $51.11 per share

But that's too much, let's be more realistic...

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Freegold Ventures – Stock Price Estimate at $4,000/oz Gold and $100/oz Silver

(Using $100/oz in-situ valuation and estimated 450 million shares outstanding)

Scenario 1: 30 million oz gold resource

• Valuation: 30M oz × $100/oz = $3.0B
• Stock Price: $3.0B ÷ 450M shares = $6.67/share

Scenario 2: 35 million oz gold resource

• Valuation: 35M oz × $100/oz = $3.5B
• Stock Price: $3.5B ÷ 450M shares = $7.78/share

Scenario 3: 40 million oz gold resource

• Valuation: 40M oz × $100/oz = $4.0B
• Stock Price: $4.0B ÷ 450M shares = $8.89/share

Scenario 4: 60 million oz gold resource (Eric Sprott speculation)

• Valuation: 60M oz × $100/oz = $6.0B
• Stock Price: $6.0B ÷ 450M shares = $13.33/share