Yeah its true the sp went to 12.5 or 13 but it was a bit different back then. Then they had grand plans which were meant to happen by the end of last year. Now we are 3 months into 2012 and none of them have happened. The agreements of understanding we had with the bank and the Chinese mob expire in May.
I think the best thing that could happen is we sell our half of laos and look elsewhere. Get SJ up and about 55000 ounces of proven gold with limited work is not bad. If we could get this up to 1 million ounces we might just have a worthwile company.A lot of smallish gold producers do between 80 to 200 thousand ounces a year. (correct me if im a bit of the mark)
Our current resource at a 50% profit margin and $1,600 an ounce is worth about $44,000,000.
Will need to prove more to get this out of the ground though
Haematite what are you like with valuations for bauxite. I guess we need 300 000 ton to make it a goer with the Laos government.
Half is ours so we have 150 000 tonnes 30% aluminium oxide - what is conversion rate to aluminium? current aluminium price is $2,000 a tonne
30% Fe2O3 - conversion rate to iron? then conversion to steel? current price
Si 10% - used in production steel??
Not really sure what its all worth to us. Anyone want to have a crack?
Our gold deposit is worth 7 cents a share after expenses or 14 cents a share before expenses alone. 44 million / 650 million shares on issue (after rights issue) = 7 cents at 50% margin. This resource is expected to be significantly increased.
Just looking at SJ its fair to say ORD is way undervalued. Just have to get some of the stuff out of the ground. Even if we cant and we have to sell these assets we are still undervalued.
If you can look past the slow progress this one is a goer!
VAN Price at posting:
2.9¢ Sentiment: LT Buy Disclosure: Held
