I ran numbers earlier based on 559M shares, 50k production and...

I ran numbers earlier based on 559M shares, 50k production and $500/oz profit. Super simple but easy to show where the SP can go. 50k oz at $500/oz profit means 25M net after expenses. That’s almost 4.5cents/share USD earnings.

austral currently trades at a P/E of ~10 and assuming that holds then this goes north of 40 cents USD or north of 50 cents Aussie/Canadian.

This can go even higher depending on the gold price. I assumed a $500/oz profit to be conservative. If you wanna get liberal use $900AISC and now we’re looking at $800/oz profit per oz mined. At 50k oz that’s $40M net, he’ll even at 40k oz production that’s $32M net. We know there’s a strike but if it lasts less than a month not really a big deal, especially if gold rips higher austral can restart mining at higher margins.

the downside is there’s only about 2 years worth of gold left at guanaco/Amancaya. The recent drilling at guanaco found new gold 7km from site though so that should add some low cost reserves.

the growth here though is going to come from reopening casposo with silver >$20 they are going to be mining a shitload of silver. We’re talking $5M oz reserves of silver at casposo.

they also have the pinguino project which recently got BIGGER as a result of the 80% acquisition of the neighboring vein system.

chart technicals show some resistance around the 20 cent mark but not much after that. Price discovery will take this north of 50 cents when gold breaks new all time highs in USD and silver goes north of 20 cents.