Great post, mate. Very happy to see you holding here.

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SilverFox88

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14/04/24

05:05

Post #: 73333259
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Originally posted by Wack: ↑

Morning all.
@BaltasarG
@SilverFox88
I grabbed some of these and was just going to ignore the noise and stay quiet.
It seems an unhappy thread for some here and I will not enter into that.

I would however like to elaborate on why I like this.
If I look at what I consider a compelling value and outlook for a target, the very things I would look at and compare to others are below.

We all know what has happened to the price while there has been ZERO reflection in the SP here.
The current mc is roughly, (all these numbers are back of the envelope by the way) $58.5m undiluted.
The res has grown to 1.6m and the current rate of addition is being done at $15/oz.
For a long time we had a gold price below $2,000/oz while we were adding oz's at $15.
We have an added $400/oz but our valuation is stagnant.
If we divide the mc $58.5m by the res oz 1.6m- we come to the value per rez oz of ~$36.60 per res oz.
That is extremely cheap in any language.
Look around and compare to others but also look at the current value of res oz.
THEN remember that we have what we need to move into production at a very attractive outlay to do so.

If I want some more reason, I would look at Skin In The Game-
22% Board & Management and Top 20 with 65% tells me that these owners are not those that let go quickly.
I am also looking at the timing of the res growth while the gold price is catching a decent rocket move and that we can produce very soon.

Anything else?

I look forward to the scoping study results and the aisc.
Open pit and shallow should be an indicator of lower opex and hence aisc.
The grade has meant that the margin is harder to love but if we look at this excerpt below we can also question just what has changed of late.

So what has changed?
The top numbers- The AUD price even with the decent pull back on Friday night is $3,627.00
The next number down becomes $117.00

I won't get into where I think the gold price is going but I am damn sure it is not going back to $2,000 for a very long time.

This excerpt below gives a figure of $50m for the value as is.
It doesn't include the value of the rest of the infrastructure like the camp and existing works but also the TIME.
How much time and cost does it save here if this were to be built from scratch?

I think I will just sit on my hands owning some of these.
Here is an interesting point of view.
At least at the 12min31 on the margins of producers and the forward outlook.

Kind regards, Wack.

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Great post, mate. Very happy to see you holding here.

BGD Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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