These guys have one hell of a story to tell and I'm listening (and have been putting my money where my ears are!.) My interpretation of recent announcements in my own words.
Expansion of plant to 40,000 to 60,000 ounces: even at a conservative 1,000 AUD an ounce this is revenue of $40m to $60m per annum. Assuming say $500/ounce opex (just guessing & being conservative) then earnings could be in the order of $20m to $30m per annum. The current market cap is only circa $25m.
They also state they could expand the current plant for USD 3-4m. They have 400,000-500,000 tonnes at grades between 1.5g/t and 5g/tonne. in their existing stockpiles and dumps. Ill use 450,000 tonnes @ 2.0g/t to split the difference. This equates to 900,000 grams. At a conversion rate of 28g/ounce thats 32,142 ounces times $1,000 AUD/ounce = ~$32m AUD just for the existing stockpiles. (although note in their investor presentation that Sampling of stockpiles and surface material in immediate plant area returned grades > 3 g/t gold in 79 out of 151 assays so plenty of upside)
Their exploration is throwing up some good grades and very close proximity to the plant. The feedstock potential is enormous. One result that caught my eye from the Obenemase deposit 1 m at 438g/t gold from 147 metres
There is so much more to this story to come, its a page turner and Im looking forward to each chapter.
This is my take on it so DYOR and crap test my numbers as you see fit.
Looking forward to more & more & more...
Cheers All
Maddoc
SBL Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
