I recently took a position here as I think GPR looks way oversold here. Bear market and substancial holder Spheria are selling shares.
Current market cap is $15m with $5.7m in cash and $21m in long lead items that can be offlaoded means GPR has a negative EV.
Current gold price $2711
ASIC in June 2021 was quoted at $1239 - that's $1472 margin although ASIC is likely higher now.
If they can achive $1000 margin with 100,000oz annual produciton = $100m free cash flow per year (1.5moz over 13 year LOM = 115,000moz)
As an investor getting in now, GPR have already spent a fortune on infrastructure, roads, villages etc. Looks like over $100m spent and you can buy now with a negative EV.
I think this will turn around strongly, perhaps once Gold equities get some love which appears to be happening now. Looks to be set up for a takeover, they have mentioned in previous announcements they are getting unsolicited offers.
DYOR
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