We want to get out, either for peace of mind or profit. So how green do the pastures need to be for us to fatten ourselves up and leave?
Let’s say it’s got to get up to 2.3 cents at 6.942 bn shares, so virtually all investors can leave with nothing but interest as an opportunity cost or at a small (perhaps even with a high ROI) profit.
Thats about 159 mn market cap.
If they can get 25% market/present value of future value of the in ground value (very heavily discounted) and a margin of 800 per oz (very low), they only need to find 800 k oz (a fraction of what DEG has found). Keep in mind DEG’s area to drill out to secure infrastructure is actually quite large too.
Evolution currently has an all in cost of 1600 AUD per ounce and the spot price is 3851 AUD.
The assets are good, cash burn is the ever present issue.
If they found say 1 mn oz JORC (measured) Au, I’d love it if they sold it forward to a third party processor for a discount, instant cashflow, reserves, no risk, no expenses and kept for future projects at the cost of losing currrnt and near future equity income. No debt and less risk.
MTL Price at posting:
0.2¢ Sentiment: Buy Disclosure: Held
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