Ampella's share price has pulled back 45% over the last 30 trading days and 81% over the last year.
Trading at A35c, we see significant upside if the company can delineate the required ~400koz of oxide material to develop the Stage 1 conventional CIL project at Konkera. In our view, Ampella's large tenement package remains highly prospective and with A$35m cash on hand we believe the risk is weighted to the upside from A35c.
• Pullback provides opportunity: Ampella is currently trading on a P/NAV of 0.2x, materially lower than the 0.55x average for explorers across RBC's global universe. Furthermore, Ampella has an attractive EV/oz of US$17/oz, 60% below the average West African explorer at US$43/oz.
AMX Price at posting:
33.5¢ Sentiment: LT Buy Disclosure: Held
