As said today, they'll start stockpiling ore next month, but need to find $30M of farm in or funding to get the processing plant online.
With a gold price of approx $850/ounce, even with mining and processing costs of $400/ounce (very high for the grade we're looking at) a single years' production would pay for any facility.
ANZ certainly murkies any finance deal, as they most likely have a lien over the existing plant.
Farm-in I would have though would be ideal. Give someone else 30% of the mine for $30M and they could have a complete RTO in a little over 3 years.
Even if oil goes down, macro economic pressure and sub-prime resets at the end of the year will continue to bolster the gold price as a recession hedge.
Where else could you get a mine this close to production for these crazy prices?
ANZ's convertible notes went through at an equivalent of a $0.30 share price. If it just gets back to the convertible note level, it's a decent multibagger!
;-)
ARX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
