Everyone talking about the Filipino asset as per usual, blinded by a free option (valued at zero) when we should be talking about this study coming out tomorrow . Let me recap...
Martha UG: 9mt @ 5g/t for 1.4Moz. M&I 5mt @ 5.2g/t for 820koz.
WKP: 2.9mt @ 12.5g/t for 1.1Moz.. M&I 1mt @ 13.4g/t for 420koz.
A combined M&I of 6mt @ 6.6g/t for 1.2Moz.
They have a 400ktpa mill so the mine life on ONLY the M&I based on current sized mill is 15years. I think they double the plant size to 800ktpa, feed 7g/t ore through and produce ~170kozpa at around US$130/t ore or US$600/oz.
At current prices based on the above Waihi alone *could* cash flow A$300m pa and has to be worth at a minimum (IMO) A$1.5bn given a resource life of 15 years and minimal capex to expand 400ktpa plant and open up UG. That’s A$2.40/share, for Waihi...ONLY. Haile is worth much more. Tomorrow will reveal the numbers but I’m getting set today as I think the market is still completely asleep on this.
OGC Price at posting:
$3.35 Sentiment: Buy Disclosure: Held
