Just got this email:
____________
Unknown and Undervalued: $2M Market Cap ASX Junior to Produce $16M of Gold in 2014
Don't you just love a comeback story?
One overlooked gold company is priced like a tiny explorer, but not only do they already have a JORC resource, they are stockpiling gold ore right now, ready to be processed and sold in the coming months.
Well, they were overlooked by the market... until a few days ago when they announced a deal that would set the final scene in their epic turn-around.
Their return to the market catapulted them onto the radar of investors looking for grossly undervalued assets...
However they are still capped at just $2 million.
A precious metal investment group just offered to pay US$5 million for just 10% of the gold our company produces at their flagship, ultra-high grade gold project...
Plus another $4 million on top of that as they take delivery of this gold.
The other 90% of gold can be sold on the market - this company has an implied total revenue over the lifetime of their project of approximately $126 million.
This is just working off their JORC resource...we aren't even counting the upside on the multiple unexplored veins on this project.
We love getting in on unloved companies on the verge of a comeback to get exposure to prime assets that are undervalued.
With cash costs down to $690/oz in a matter of months, we are expecting them to realise their true value very soon.
_______________
Leads to this website:
http://www.nextsmallcap.com/recent-deal-implies-126m-cash-flow-valuation-and-tipping-point-for-re-rate-of-tiny-unknown-gold-junior/?utm_campaign=MIZ_MA1&utm_source=SD&utm_medium=edm&utm_content=20140430
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