Southern Cross Goldfields (SXG) is my pick for steep re-rating in the next few months and beyond.
WA. Marda gold district.
Market Cap ~$14mill
Cash ~ $3.5mill
Feasibilty study due this QRT into a base case 30,000oz pa over 5 years. Over 600,000oz already JORCed up and growing.
I say "base case" as an extensive drilling campaign during the first half of this year turned up excellent results and points towards a significant increase in grade and contained total oz IMO. I believe given the results, including plenty of high grade near surface stuff, production could be significantly more and mine life extended than originally planned.
Production aimed at mid next year.
Given low market cap, I believe SXG will be one of the those companies that takes on steep re-rating, especially given feasibility and associated resources upgrades is due within the next 6week. I've been buying at around 7cents mark.
