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BWThankyou for your summary - I was always of the view about $10...

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19/01/19

20:01

Post #: 37165653
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Originally posted by binwood: ↑

There are a few parts to answering this in my opinion. So below are some of my thoughts:

1. Exploration companies seem to be happy to spend at least $8-10 per oz of resource found. Therefore this in theory should be a minimum valuation in my opinion.
2. There are plenty of exploration companies trading at something like $15-20/oz of resource. However in saying this I think gold stock valuations are quite depressed (especially outside Aus) compared to the current level of POG. Not quite late 2015 levels when POG bottomed out but still not reflective of current gold price I don't think
3. Development companies are trading at least $40-50/oz resource from what I can tell
4. There is likely some discount for operating in BF.
5. Our resource is an alright grade but not spectacular.
6. Based on points 4 and 5 I think our critical mass is something like 2-3Moz for us to start being valued as a real deal. A 5Mtpa plant would be able to produce 200Koz p.a if we could get to a 2Mtpa reserve.

So on this basis if we can get to 2Moz+ with a decent amount of M+I and not all inferred then I think $15/oz starts becoming reasonable. So $30m. I think even now we should be trading on that $8-10/oz. So 1.4Moz is still $11.2-14m. We are currently sitting a little under $10m. So some upside right now with more to come as we know JORC will grow. The main load is still only assessed to 115m below surface. We have Red Hill and some other good drill results outside current mineral zone and we now have a 5km footwall trend to follow which provided some good results.

So in conclusion I see plenty of room for incremental value addition over the coming months. A POG breakout is a wild card.

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BW
Thankyou for your summary - I was always of the view about $10 per oz "as is" ......... room for upside indeed.

GMR Price at posting: 2.1¢ Sentiment: Buy Disclosure: Held
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BWThankyou for your summary - I was always of the view about $10...

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

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BWThankyou for your summary - I was always of the view about $10...

Top Stories

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

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Week 27 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

Almonty locks in govt agreement for tungsten oxide plant in South Korea

Immutep reports strong response rate from immunotherapies treating carcinomas

ASX hits all time high out the gate on Friday trades following bullish US inflation data

SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

Bitcoin investors need to know the risks

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