Even if the Gold pour per week is 400 oz (20% less than the early February production rate), the share price will go higher than $0.03 (triple of the existing price).
Why?
400 oz per week is about 20,800 oz per year. For the gold price of $1675 per oz, the CTL’s revenue will be $34.84M. Consider the estimated cash outflows of $7.9M for each quarter (see cashflow quarterly report – Dec 2017), the annual earning will be $3.24M per year. Assume a reasonably low PE of 10, the share price will be higher than $0.03.
CTL Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
