Ok, For those who haven't been checking the spreadsheet for updates they are as below:
What we can notice here is that the average value of all the west African gold companies has gone up since the initial post (thanks I suspect to the gold price). In my original analysis I didn't have the FFX cells updated correctly so it was referencing the old EV not the current one. This has now been fixed and the sheet updated accordingly. I also didn't account for the 80% ownership in the project so this has now been fixed also. From this it is clear that we are now moving in the right direction for a share price target based on our inground resources and reserves.
We are a little below on a reserve basis but above on a resource basis. (Keep in mind we will likely increase this once in the Morilla pit drilling). However there are better ways to value the company, such as NPV.
On a NPV basis you would value the company at $0.60/share.
However we need to remember that this is only half the story, and I do mean half. We need to add in the value of the lithium.
Depending which metric we use we come up with a value of between $0.47-$0.78. I think the $1 price target is still very sensible.
C'mon Macquarie, bring on the price discovery!
