Not trying to be rude here but the numbers don't gel. Before I get there, I will say the following:
1. Costs will start to fall considerably both in capex.development spend and opex per oz;
2. Production will rise higher than you suggest - i think 25k oz pa (or 6250 a qtr. ) will be the baseline not the top line;
3. As a result free quarterly cashflow will be considerably higher than you're suggesting - I'm thinking in the order of $3m - 4m+ free a quarter.
To your numbers, taking them at face value.
$4m net cash a year is not necessarily earnings but let's run with your $4m number.
Let's run with a PE of 10 which is reasonable.
You the need to work out EPS so divide earnings by issued capital - so $4m /1.3 billion x 10 = 3.1c
But if earnings are 4x your number:
3.1 x 4 = 12.4c
And there is much potential for some high grade surprises here and there.....
The big prize is a new lode/ore body (at A1 or Maldon) along the lines of Fosterville's Swan Zone that has propelled Fosterville into one of the world's elite gold mines.
"In particular, the Swan Zone (previously known as Lower Phoenix Footwall) contributes 532,000 ounces at an average grade of 58.8 g/t Au (281,000 tonnes) to the updated Mineral Reserve estimate."
That's the big picture.
CTL Price at posting:
1.1¢ Sentiment: None Disclosure: Held
