Are you worried about the upcoming debt repayments as disclosed...

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CoreyA

5 Posts.

05/06/19

11:22

Post #: 38916550
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Originally posted by eshmun: ↑

Is the grade issue that terminal to warrant this sell-off?

15% under call on reserve grade across the site for the first 12 months at Westralia and Jupiter.

The report is talking about Jupiter performing well during the quarter with an average unreconciled claimed grade of 1.6g/t (if you can believe them)

The grade issues at Westralia are also claimed to be the result of high nugget dilution in subordinate lodes and dilution from stope voids sitting above current stoping levels and the production shortfall is still being put down to underground contractor performance issues.

225.7 million SOI at 67.5cents per share gives a MC of ~$152 million, EV of about $206 million (based on March quarter debt and cash figures).

The Company’s preliminary FY2020 production and cost guidance anticipates that production will be in the range of 150,000-170,000ozs at an MMGO AISC of A$1,350-$1,450/oz.

Compare that with NST's Kalgoorlie operations which this YTD has an AISC of $1358/oz and produces about twice the ounces of gold as the preliminary forecast above. How many billions!!! does the market ascribe to NST's Kalgoorlie operation.

The market seems to have this way out of proportion based on comparison of these two operations.

This sell off seems way overdone to me as long as the company is still in control of its contractual liquidity obligations.Esh

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Are you worried about the upcoming debt repayments as disclosed in the HY19 accounts as part of the 'contractual liquidity' obligations now knowing the FY20 outlook on ASIC and Ounces? I do not think they have much room to move if it is worse than the prelim FY20 guidance

DCN Price at posting: 59.0¢ Sentiment: Sell Disclosure: Not Held
2 Upvote

0 Great analysis

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