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If gold hits $4,000 per oz

RO
RockeTellerInvested
Community Contributor

Published

October 21 2024

Updated

October 21 2024

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📈 NexGold Mining Stock Potential Analysis

1. 🔍 Current Situation: NexGold Mining, with its Goliath-Goldlund project, is set to begin production in 2027, with an initial annual production of 120,000 ounces. The acquisition of Signal Gold adds significant resources and production potential, particularly through the Goldboro project.

2. ⚒️ Production and Revenue:

- Total Annual Production:

220,000 oz = 120,000 oz (NexGold) + 100,000 oz (Goldboro)

- Total Annual Revenue:

$880,000,000 = 220,000 oz × $4,000/oz

3. 💰 Profitability:

- Net Profit per Ounce:

$2,150 = $4,000 - (($900 + $800) / 2)

- Total Annual Net Profit:

$473,000,000 = $2,150 × 220,000 oz

4. 📊 Valuation:

- Market Cap:

$4,730,000,000 = $473,000,000 × 10

- Projected Share Price:

$9.46 = $4,730,000,000 / 500,000,000 shares

5. 🚀 Investment Potential:

- ROI:

1,589.29% = ((9.46 - 0.56) / 0.56) × 100%

- Baggers:

16.89 = 9.46 / 0.56

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Disclaimer

The user RockeTeller has a position in OTCPK:NXGC.F. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
US$9.5
94.6% undervalued intrinsic discount
RockeTeller's Fair Value
Future estimation in
PastFuture-26m2m20132016201920222024202520282029Revenue CA$0Earnings CA$0
% p.a.
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Current revenue growth rate
0.00%
Metals and Mining revenue growth rate
57.25%