Majestic mining (AG) review.

AG has a market cap of $2.75 billion. I will focus on Jarritt gold mine. Jarritt has estimated 1.6 million ounces Gold. Jarritt was producing gold at $1250 per ounce cost. Majestic has closed the mine for a couple of years due to multiple issues: broken equipment, tough to process, cost increases, permits.

I believe (no inside data or anything) that Majestic will announce Jarritt is going to reopen during next quarter results. Why? Because 1.6 million ounces * $2900 = $4.6 billion. If they can mine at $2,000 an ounce that is estimated profit of $1.5 billion. Right now Majestic market cap has Jarritt valued at zero. Adding additional sum of multi year profit of $1.5 billion should give the stock price a nice jump. Jarritt was originally meant to produce 130,000 oz a year which would be revenue of $377 million profit of $120 million assuming mining cost of $2000 per ounce.