Hang in.
Simple maths for me as follows. Figures are rounded for ease of calculating.
500,000 oz gold at $500/oz cash profit less 30% tax leaves $175 million out of which spend $75 million on mill and processing plant. GML is worth $100 million to shareholders and then take off a further 25% risk factor and GML could easily trade at a market cap of $75 million versus its current market cap of $17 million.
That implies a SP of around 37 cents per share.
Assumes A$2,500 gold price.
My view is that the above is achievable once the project starts producing gold or a capital transaction takes place, however in the current climate a transaction seems a distant hope.
GML Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)