The Matilda valuation post debt repayments gives a sp around 4c to 10c based on FY19 AISC and production guidance. Note that the market at the moment is not willing to pay more for the remaining reserves and resources because the management’s sneeky way of whitewashing and glossing over issues has earned themselves bad reputation.
Why the sp was as high as 90c before production? Because the market believed BLK could realise the entire 6.5m oz gold. Now the market don’t believe it anymore.
Having said the above, I would buy in again if sp drops below 5c, because if they could achieve the top range of the guidance and do not give the market big surprises, sp should be close to 10c in the next 24 month.
BLK Price at posting:
5.3¢ Sentiment: Sell Disclosure: Held
