Nice work with the plan. If you got one in place it’s always hard to stick to. G88 look okay but still early stages. Could be onto something. LOTS of drilling to come. Their market cap jumped to just under 34 million on friday so it is still cheap. Just under 4 million at bank at 30 million EV (enterprise value). Ardea sits with 220 million market cap fully diluted but would have roughly 30 million cash in the bank after option exercise meaning 190 million enterprise value at the current price.
The current small register for Ardea at their stage of development is worth big bucks which many investors tend to ignore. Dilution going forward is minimal or next to nothing and management believe the current funds and option exercise should carry them through to BFS. It’s something to consider when running valuations. The fact the KNP resource was drilled out by Heron and Vale (wasn’t it 50 million spent in total) well imagine the additional dilution to the register to even drill half of that out. Companies/new comers with new discoveries and resources yet to be drilled out will still have excessive dilution and additional shares added to their registers.
The grades G88 reported on their discovery are very good and they mention how it’s open at depth to fresh rock etc which is also good but the question is will those grades spread across the entire deposit. That’s the risk now for G88 moving forward.
If you look below there was extremely thick and high-grade cobalt-nickel intersections reported by Ardea and Goongarrie South. These grades and widths exceed those reported by G88.
Just pointing this out because you said you knew some of the selling was related to speculators in ARL selling to jump to G88. I can see the promising results in G88 thus far but not enough to make me jump on them from ARL which is much more solid and further developed.
ARL Price at posting:
$1.99 Sentiment: Buy Disclosure: Held
(20min delay)