Exeter Resources: Investors Should Expect A Higher Share Price Or A Buyout
- Exeter's new PEA shows that Caspiche can be developed as a low-CAPEX mine with a fraction of the original water usage.
- Exeter's current share price is at levels that reflect its previously financially unfeasible, high-CAPEX Caspiche plan and Exeter could have a 30-50% upside to get to price levels that reflect.
- The newly demonstrated optionality of Caspiche offers potential acquirers two different ways to develop the project based on high or low gold prices.
- Kinross's nearby Maricunga mine is expected to leach its last ore in 2019 and Exeter would make a nice, cheap target to shift resources over in time for mine decommission.
- A new Chinese law to remove government approval for acquisitions under $1 billion may bring in Chinese acquirers as Chinese-Chilean trade relations are extremely strong.