Poker, I know it’s all hypotheticals or as Travis Cloke calls...

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Thesleepingiant

348 Posts.

391

06/04/20

18:54

Post #: 43912291
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Originally posted by Pokerface: ↑

Current share price 5.3c. Fully diluted market cap say $80m. Current gold price $2680A

PFS results: At a $2100A gold price- $332m NPV (22c); $551m pre tax cashflow (37c) IRR 32%

At current gold price- $700m NPV (47c); $1.1b pre tax cashflow (74c) and an IRR of 65% ( note, my numbers, not from company)

At $3000A ( where we are heading!)- $900m NPV(60c); pre tax cashflow of $1.4b (90c) and an IRR of say 80% ( again my numbers based on the PFS results which gave the comparative numbers between a $2100A gold price and $2530A gold price, which was the spot price at the time of publication)

Now, I have to be pretty bullish about the upside for these over-arching reasons:

1. I fail to see Gold under- performing given the historic mountains of cash being thrown at this Covid19 chaos. Currency risk just went rocketing upwards. Constraints on actual mining in the short term could also contribute to the gold price rising.
2. These numbers do not incorporate any of the satellite deposits, which is very important and probably understated by the Company in its PFS announcement.
3. The highly prospective collection of tenements in terms of future resource and reserve growth. Drilling over the past year has indicated there is definite potential excitement out there!
4. The geography- few better addresses than being near Kalgoorlie
5. Great Management Team ( despite what a few resident HC knockers may assert). I can attest to having made millions in the past following the core of this Team and I have heavily backed them again, and very happy to be in this position, despite all the other crud we are all dealing with at present
6. No need for a cap raise any time soon
7. Very low cash burn if required
8. Path to production becoming clearer and clearer
9. CEO’s career experience in and around Kalgoorlie as a Mining Engineer
10. It’s the vibe!

I am about to wash the car- not much else to do.

From the numbers I am seeing, I think OZ could come out of this relatively quickly. Fingers crossed! Stay calm and safe everyone!

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Poker, I know it’s all hypotheticals or as Travis Cloke calls it, ‘smoke and mirrors behind the windows’, although looking towards the DFS report and assuming the PFS is a strong resemblance of the DFS, what SP would you forecast us to be at?

I’d be intrigued to hear your wise opinion on the SP by the DFS announcement and prior to first pour.

Also, if we see a major financial institution offer support who would want to take a stab in the dark where that could put us.

Good to see a solid day in the green finally after a few quiet months (albeit a good consolidation period for some..)

BDC Price at posting: 5.9¢ Sentiment: Buy Disclosure: Held
2 Upvote

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