Really interesting to see what happens here. Pacific Road have...

Really interesting to see what happens here.

Pacific Road have walked away.

Orion have given BLK 2 weeks to pay 15M or they will be in default.

However, before we start talking about what the asset is worth, the real question is- are they able to mine this profitably.

If AISC has not decreased to under $1250 per oz AUD, then even if Orion put this into administration, they would be lucky to receive 25 cents in the dollar.

Company needs to disclose current production costs, because how can shareholders make a decision to take up entitlement issue if they do not know the true facts.

Shareholders will have little value here.

There are currently 350M shares on issue.

Even if it is priced at 7.5 cents that is 480M. I think there may be more debt converted, however lets assume there is not.

That is 830M shares on issue. Until it is making a profit, EV would be no more than 50M. Equates to 5 cent share price.

At the end of day, this does not matter- The key question is CAN THEY MINE IT PROFITABLY.

1. If so- it survives 2. If not Voluntary administration/ Creditor Administration

Its that simple

Good luck shareholders

DYOR