Fredonia Mining (TSXV: FRED) has released a maiden PEA for its El Dorado gold project in Argentina, outlining a US$1.494 billion after-tax NPV, a 65% IRR, and a 1.9-year payback on just US$346 million of initial capital. Yet the company itself carries an enterprise value of roughly US$36 million.
In this video, we break down the economics behind El Dorado, the low-grade heap leach model, the unusually low capital intensity, the assumptions that deserve more scrutiny, and why Fredonia trades at such a massive discount to other gold developers.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Look at what Robert Friedland did with his nickel project in Canada, There is your answer! Management of Fredonia Mining know they have literally gold in their hands.