Take it back a step Z $300 mill gross over ten years doesn’t mean its worth $300 mill. No one would ever pay $300 mill for something to will earn maybe net $150 mill before tax over that time and no one will pay $150 mill just to get back $150 mill either.
So you need to work out an NPV for its value.
$10-15mill margin for 3-4 yrs $30-60mill NPV which is 3-4 years net earnings but it may be lower or higher than this.
This is realistic, if you look at BCN as an example higher income but lower mine life, about $100 mill MC (I don’t own BCN and I’m not cross promoting, I do own another company in a similar situation to DDD so I have a real interest here).
The real kicker here in value is not your short term cash flow because there will be little cash left over as it will be funding a big drill deep program targeting extensions to the high grade zones mined out 80 years ago.
If that is found well maybe 3 x $300 million in 6-7 years, but it’s expensive drilling and there are no guarantees.
That’s the potential prize but funded by the cash flow which in the short term needs to find replacement mineable oz to maintain cash flow. First stage drilling has discovered some road blocks in the short term, those voids that were hit point to more mine shafts down there then any public plans had indicated, that’s an issue no one ever discusses here. So some easy to get to oz have already been got to avoid gold tax a long time ago it seems.
This becomes a business very different to an explanation company and management need to navigate through the transition without more CR once production commences.
But this is no walk in the park.
- Forums
- ASX - By Stock
- ADG
- Ann: Half Year Accounts
Ann: Half Year Accounts, page-19
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ADG (ASX) to my watchlist
|
|||||
Last
0.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $5.589M |
Open | High | Low | Value | Volume |
0.5¢ | 0.5¢ | 0.5¢ | $2.5K | 500K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
26 | 17386857 | 0.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.5¢ | 2711331 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
26 | 17386857 | 0.004 |
34 | 30759719 | 0.003 |
8 | 39700000 | 0.002 |
10 | 88555000 | 0.001 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.005 | 2711331 | 5 |
0.006 | 9161000 | 9 |
0.007 | 8853301 | 9 |
0.008 | 10709612 | 8 |
0.009 | 6655712 | 7 |
Last trade - 13.34pm 03/09/2024 (20 minute delay) ? |
Featured News
ADG (ASX) Chart |