interesting numbers starting to happen now that copper is over $3
The NPV of the project can and will be taken into account by investors once the license is approved. There also may still be interest in purchasing the project from other parties (eg Savannah), so we cant rule out a potential cash transaction based on the existing NPV.
The DFS supposed 10mT but the resource is now 16mT, and with copper prices outperforming expectations the NPV should be more than the AUD$94m projected for the high case.
What price for a fully approved $94m+ NPV project complete with financing and off-take agreements? Factor in the extra shares from the first dilution (using the lower case 2c - 100m) and the company is suddenly worth about 9.4c on Al Hadeetha alone (70%Alara).
I think if they announce the MECA approval early enough this week then we could comfortably see 5c before the $2m is approved, meaning only 50m more shares at 4c
Leave the 10% placement until mine construction begins and we might be talking about 65m shares at a much higher price, especially if the BOG hands down a positive judgement this weekend.
These are all very optimistic speculations, but the tone of the report was surprisingly optimistic so i don't think they are out of the question.
We'll have a better idea this week, in any event, but i'd say judging from the chart over the last 3 months that the market is genuinely expecting some favourable outcomes.
AUQ Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
