7.8 Million Ounces.. When the Earth Speaks the Language of "Fair Value"
- In the mining investment world, there's a golden rule: "The company's value is not only what it sells today but also what it holds underground for tomorrow."
Today, "Maaden" announced an addition of 7.8 million ounces of gold resources, which was not just a routine reserve update, but a comprehensive reevaluation of the company's asset portfolio.
Let's talk about what’s behind the news: - 1. Timing is everything: Discovering and documenting these massive quantities at a time when gold is trading globally at historic highs (above $2600 per ounce), which doubles the market value of these resources.
We are not talking about cheap gold, but assets valued at current high market prices. - 2. Operational efficiency (Low Hanging Fruit): The notable part of the news is that a large portion of the increase (3 million ounces) came from the existing "Mansoura and Massarah" mines.
Economically, extracting additional gold from an existing mine with ready infrastructure is much more profitable than building a new mine from scratch.
This means higher profit margins in the future. - 3. Beyond gold (Critical Metals): Indicators of copper and nickel have been discovered.
The world is heading towards electric vehicles and clean energy, and these are the metals of the future.
"Maaden" here tells investors that it is not just a gold and phosphate company, but a major player in the new global supply chains. - Impact on stock movement:
In the short term: The stock reacted today (up 5% as seen in the previous price screen), which is a natural reaction to the increase in "Net Asset Value" (NAV).
The market is re-pricing the stock based on the newly discovered wealth.
In the medium term: This news reduces fears of "depletion of mines" and extends the operational life (Mine Life),
giving financial institutions greater confidence in holding the stock as a long-term investment. - Summary:
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7.8 Million Ounces.. When the Earth Speaks the Language of "Fair Value"
-
In the mining investment world,
there's a golden rule:
"The company's value is not only what it sells today but also what it holds underground for tomorrow."
Today, "Maaden" announced an addition of 7.8 million ounces of gold resources, which was not just a routine reserve update,
but a comprehensive reevaluation of the company's asset portfolio.
Let's talk about what’s behind the news:
-
1. Timing is everything:
Discovering and documenting these massive quantities at a time when gold is trading globally at historic highs (above $2600 per ounce),
which doubles the market value of these resources.
We are not talking about cheap gold,
but assets valued at current high market prices.
-
2. Operational efficiency (Low Hanging Fruit):
The notable part of the news is that a large portion of the increase (3 million ounces) came from the existing "Mansoura and Massarah" mines.
Economically, extracting additional gold from an existing mine with ready infrastructure is much more profitable than building a new mine from scratch.
This means higher profit margins in the future.
-
3. Beyond gold (Critical Metals):
Indicators of copper and nickel have been discovered.
The world is heading towards electric vehicles and clean energy, and these are the metals of the future.
"Maaden" here tells investors that it is not just a gold and phosphate company, but a major player in the new global supply chains.
-
Impact on stock movement:
In the short term:
The stock reacted today (up 5% as seen in the previous price screen), which is a natural reaction to the increase in "Net Asset Value" (NAV).
The market is re-pricing the stock based on the newly discovered wealth.
In the medium term:
This news reduces fears of "depletion of mines" and extends the operational life (Mine Life),
giving financial institutions greater confidence in holding the stock as a long-term investment.
-
Summary: