Allday, you have to seperate our high grade OP resource which for now only contains 565,000oz and Buccaneer which has 2.6milloz but at much lower grade. The low grade at Buccaneer is partly offset by low strip ratio and economy of scale but until we see a FS it is difficult to put a value on it. A producer even at low grade has a track record against which it is easier for the market to value it. OP by contrast is very high grade so is much easier to put a value on. It may be only 565,000oz but the exploration upside is the biggest attraction. Exploration is very early stage. There is no reason to believe this won't go over a million ounces and it has potential for much better. Then we will see multiples of the current price. With Buccaneer I think we need a little patience before the market gives it a reasonable value. We probably need to see either a study or higher gold prices whichever comes first.
ABU Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
