- Sabina Gold & Silver is down more than 40% from its 2020 highs, and has slid to a market cap of just $572~ million.
- While this might seem expensive for a gold developer, it's a dirt-cheap valuation considering that it's one of the best stories in the space, with this thesis emboldened last week.
- This is because the company released an updated Feasibility Study for its Back River Project with improved economics, sporting After-Tax NPV (5%) of $800 million at $1,600/oz gold.
- Based on the recent developments, I see Sabina Gold & Silver as a potential takeover target, with a fair value for the stock at US$2.97.
For further details see:
Sabina Gold & Silver: Back River Feasibility Study Confirms Robust Economics