My definition of a ramp is an unsubstantiated post clearly designed to artificially lift a share price. A post that is substantiated then cannot be a ramp. It is not often that such an outrageous claim can be substantiated - so here goes.
Yesterday's post from GUN presented great news. The mine is on fixed price contract track to commence next year. Capex required is $85 million, half bank finance half equity. This leaves GUN to raise $42.5 million less the $8 million it is to recieve in forward payments from signed up customers. This leaves about $34.5 million to be raised.
$34.5 million equates to about 100 million shares but let's say for the sake of easy maths 114million shares bringing GUN to a total of 200 million shares when the mine starts operating.
Bemax (the most comparable mineral sands miner to GUN) have commenced operation recently sp 37.5 cents. Number of shares on issue 905 million being 4.5 times that of the extended GUN on this basis GUN should be at the time of commencement of mining .37.5cents multiplied by 4.5 which is $1 .68c. A five bagger from where they are now. (Bemax faithful I am not knocking Bemax in fact more power to them the higher their sp the higher GUN's)
$1. 68c does not factor in the richer mine, closer and cheaper to transport, cheaper to mine etc. Or the other plays that GUN have. I know that this is a fairly simplistic comparison of two stocks but it does underscore the sp potential in GUN. Warren Buffet once said that the stockmarket is a machine for moving money from the impatient to the patient. This time punters do not have to be all that patient, 14 months.
Do your own research
Pagarsi
GUN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
