The Investment Doctor
Long/short equity, value, debt, base metals

Chesapeake Gold's Metates Project Needs A Much Higher Gold Price

Introduction

In this article, I'll have a closer look at Chesapeake Gold (OTCQX:CHPGF) which aims to develop its Metates project in Mexico which is very likely one of the largest undeveloped gold-silver-zinc projects in the world. I'll start by providing a background of the project and will move over to play with some numbers to test how sensitive the net present value of the project is to changes in commodity prices.

Thereafter I will explain the risks involved with an investment in Chesapeake and I will provide some possibilities which might be used by Chesapeake to finance the initial capital expenditures of the project. This will result in my investment thesis at the end of this article.

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