So let me get this right;
1. 25K oz pa of historical gold production from A1;
2. Still producing while in admin at A$2,600 per oz gold prices;
3. A fully permitted mill in a region where no new licenses are being given for mills;
4. Assume KAU ramps production back up to historical run rate of 25K oz pa;
5. Based on historical operating costs AISC of A$1,600 is realistic;
6. That's A$1,000 per oz in free cash flow X 25K oz = A$25M pa in EBITDA
7. ASX average PE ratio is 12 X Earnings so should be $300M market cap on A1 alone;
8. Then there's the Union Hill mine;
10. The mine has been drilled and mined but is now on care and maintenance;
11. No maiden resource has been defined at Union Hill;
12. It sits 30 km along strike from Fosterville, which is the largest producing gold mine in Victoria;
13. Fosterville is owned by Kirkland Lake Gold (TSX: "KL"), which is valued at C$19B;
14. Mineral Reserves at Fosterville in December 31, 2018, increased by a million ounces to 2.7 million ounces (2.7 million tonnes) at an average grade of 31.0 g/t, including a Mineral Reserve in the Swan Zone totalling 2.3 million ounces (1.47 million tonnes) at an average grade of 49.6 g/t (https://www.kl.gold/our-business/australia/fosterville-mine/default.aspx)
15. The potential for early exploration success at Union Hill is significant. A couple of deep holes could: (1) help define a maiden resource; and (2) show another Fosterville style deposit. If this happens, in conjunction with a profitable small scale, high grade operating mine at A1, then this is a A$500M + Company all day every day.
Unless I'm missing something this is going to be hottest stock of 2021 IMHO.
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Mkt cap ! $27.36M |
Open | High | Low | Value | Volume |
16.0¢ | 16.0¢ | 16.0¢ | $18.82K | 117.6K |
Buyers (Bids)
No. | Vol. | Price($) |
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Price($) | Vol. | No. |
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16.5¢ | 18800 | 2 |
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No. | Vol. | Price($) |
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2 | 80000 | 0.145 |
2 | 156800 | 0.140 |
1 | 69165 | 0.115 |
1 | 20000 | 0.110 |
Price($) | Vol. | No. |
---|---|---|
0.165 | 18800 | 2 |
0.170 | 141744 | 6 |
0.175 | 13200 | 2 |
0.180 | 135000 | 1 |
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