Comprehensive answer Redned - cheers.Like you say know given...

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Zixio

525 Posts.

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20/01/21

09:52

Post #: 50295482
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Originally posted by redned71: ↑

G’day zixio. You’re right in that you can’t estimate intrinsic value right now. Of the 3 most commonly used methods; one uses cash flow and estimate of future cash flows,p; one uses P/E and estimates of future P/E and the third uses net assets. You could try the third, but right now our assets are not all that much. Total equity after the capital raising was $13m. Wouldn’t have changed much with cash spent buying equipment and digging holes. Intangibles will rise when we have an upgraded resource, but still wouldn’t be anywhere near the market cap from share price.
so you won’t have any realistic intrinsic value possible for a while yet.
They don’t need to raise more cash until in production, which is great. But that means they also don’t need to pump the price with a string of announcements, as most juniors have to do.
hopefully they will confirm annul production and maybe we can estimate profit and dibs from that. But if they’re looking to acquire more ground, as they’ve said, they may keep some of the future profits for that. if they use equity, we get diluted.
so it’s all conjecture at this point.
bit frustrating not knowing why we’re going so high so fast. Can’t be just the ore price, or FEX would be flying too.
investing medium/longer term require patience.
Cheers,
ned.

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Comprehensive answer Redned - cheers.

Like you say know given reason for flying high and I have been balancing off in my mind current prices versus risk around annual production numbers - which could delight or disappoint.

GLTAH.

TI1 Price at posting: 9.7¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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