That's definitely the case. While it would be good to get a bit more detail on the terms of the gold loan, the detail that was important to me was that they were looking at drawing down $2.6m, and that this should be sufficient to execute Mt Porter. This is the kind of important detail that I suspect people skimming ASX releases might miss: while they're rated as safe enough to lend $6m to, they're not looking to get in debt by that much right now.
I like the look of Golden Honcho too. While I'm a bit leery of thin vein-y gold after ABU, the short term production plan with Mt Porter ameliorates that risk and- as you say- the market cap lowers that side of the risk equation substantially. What's key for this type of operation is that the infrastructure is close. I also like that the key metrics like cost of production and recovery figures look sensible given what's involved and aren't promising to the moon.
I agree with your comments in a previous thread: I can see this having a $30m market cap easy.
AHK Price at posting:
26.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)