It seems the market didn't realize the value of this news.
The value of the ore, which will be sold during the 18 months period is around 210 million AUD at current spot price. If we deduct the initial development costs, recovery haircuts and other related costs, we should still have at least 100 million dollars net. That's the costs to develop fully Kal East, So if they postpone any unnecessary exploration and focus on development, they can have during first half of 2026 also Kal East developed. In the meantime, Paulsens should start producing in the first half of 2025 and the FCF could be used to develop Coyote. All in all, if the gold price remains strong, this company could be producing in 2026 from 3 mines and then focus on exploration and extension of the mine life. Just imagine, that in 2.5 years we might be coming close to an annualized output of 150-180.000 ounces. As it unfolds, it seems a share price in the 30s is a gift for anybody interested. Obviously there is never free lunch and there are always certain risks embedded, but this seems a very promising risk/reward. There is no relevant permitting risk, very limited financing risk, so its just about proper execution and believing that the models about extracting gold are correct.
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