I think we could see that within the next 6-12 months if:
- Silver price edges higher by a few dollars (A$25+)
- AAT decision in favour of MRV
- No major issues that get in the way of restart strategy
If production targets are met (mining cost and ounces) and spot silver was A$25, then MRV would be pumping out $12M profit each year with an additional $1M for each $1 increase in spot price.
To play devil's advocate, AAT decision could go against MRV, silver price could crater, production issues could arise and the share price could fall heavily from where it is today. Two other miners have gone bust in the past 10 years on the same project.
$100M market cap is around a 4c share price. My base case is 3c+ within the next 6 months, but 4c would not surprise.
If all goes well and silver rallies higher (I'm of the expectation silver is in the early stages of a new cyclical bull market) &/or we see some decent exploration success then my targets may end up being conservative. AFAIK MRV will soon be the only primary silver producer on the ASX, that could bring some serious spec money if silver turns out to be in another cyclical bull.
MRV Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
