Did you also consider future gold sales funding?
Its a AUD$50M capex
They have actual, inferred and indicated; ~15M Oz or in situ ~$38B?
Future free cashflow @ their AUD$800/Oz AISC is AUD$1750 free cash flow based on 15M Oz = $26B.
Based on the current market cap of AUD$14M
However some red flags;
- They have a line of credit they are funding their company with at present
- Will anyone fund $50M for the capex based on future gold recovered?
- The indicated "reserves" 160,000Oz, probable reserves 600,000Oz; just pretend there is no inferred resource
760,000Oz = AUD$1.9B, or based on their AISC estimate of AUD$800, = $1.33B in FCF
At this FCF based on present fully diluted shares of 2,833,659,091 = AUD$0.469/ share
Based on the current price of AUD$0.006/ share this is a 78 times differential.
Then the investment looks fantastic and too good to be true...
Wait for Gold to rally, and an investor will present themselves perhaps
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