re: Ann: Kirkalocka Gold Project Feasibility ...
A few very important things to note:
- The current market cap of MUM is equal to only one year of anticipated cashflow from production.
- Gold production expected within the next 12 months.
- Existing infrastructure has a replacement value of over A$100m.
- Enterprise Value to Reserve is at a 77% discount to current ASX gold producers.
- Numerous Murchison gold explorers in the vicinity of Mount Magnet South have good projects, but need an avenue to production, creating expansion opportunities.
- At this share price, all the company's exploration upside is free.
- Most importantly, the ex-Newcrest geological team has identified a previously unrecognised geological trend, as evidenced by the higher grade of gold from drill results in the 2nd half of 2011. With this understanding of the geology, the company will add higher grade, near surface mineralisation to the resource going forward that will drive down the costs and increase the life of mine and volume of gold produced.
MUM Price at posting:
6.9¢ Sentiment: Buy Disclosure: Held
