Personally I would have wiped it to 24..
TA Chartwise : Gravestone Doji folowed by green candle signifying poss future price action
Fundamental Support wise:
From Noosa Mining Presso Bells Project Scoping Study NPV ($75m US) $91m Aud, low start up capex and AISC / 376237m shares = 0.24c
Although in total there are another 990'000 ounces at Hog Ranch which at an IG value of $45 (*****) would be another 0.18c to SP
And that is before we consider the new discovery and gold trend at Krista circa Dec 2020 where rex recorded a strike of 210m @ .66 g/t from surface from hole HR20-023 which adds further to existing resources, 90% of which are contained less than 100m from surface.
All of which would feed straight in to a new FS at Bells prospect..
Where the area has typically been mined before and produced some 334,846 ounces of gold
And recently surveyed with new IP modelling is located only 70km from Allied Nevada Hycroft Open Cut Mine, one of the worlds largest in the Carlin Trend Nevada & the associated Round Mountain Gold Mine further South..
That alone, along with a resurgence in gold price that looks to possibly continue shows upside potential on SP
And that's before we consider Hillside??? The other company making project..
Add them together (Bells & Hillside) just on FS NPV's and you get $1.57, without accounting for additional resources at Hog Ranch, or the additional kick in that Krista promises..
| Project | NPV |
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| SP |
|
| Bells | 91,000,000 | at $1550 us gold | $0.24 |
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|
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| Hillside | 501,000,000 | at $3 pound copper & $1550 us gold | $1.33 |
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|
|
|
|
|
|
| 592,000,000 |
|
| $1.57 |
|
|
|
|
|
|
|
| NPV per SOI |
|
|
| $1.57 |
|
|
|
|
|
|
|
| Current SP | 0.215 |
|
| 11.11% | Discount to Bells project alone |
|
|
|
|
|
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| Discount |
|
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| 86.34% | Current discount to combined projects NPV with no upside allocated for potential discoveries |
And yes I accept that probable risk deems we should discount PV's to our own level of comfort but with a current discount to Bells project metrics alone of 11% and an overall discount of total project PV's of 86% (Not including Hog Ranch additional resource value) I'd say we have a margin of comfort..
So based on those metrics and potential for more discoveries at Krista in that trend corridor I'd say any rerate should it continue is justified and possibly well overdue.
I'm in
8tey
@pustayo@karmalocust@Bigmarn
(20min delay)