Importantly when you look at the EV it is: Market Cap $548 less:...

Importantly when you look at the EV it is:

Market Cap $548 less:
- Cash at end of last quarter $79 million (Cash burn $11 million in that quarter, assume the same in this qtr so $68 million)
- $350 million for 50% Gruyere JV

Gives an EV of $130 million for a company with:
- Future ~135-150k ounce production from Gruyere
- South Yamarna exploration project (50%)
- North Yarmana exploration project (100%)

Smart move from management. It has manouvered the company into a position where it would be difficult for a takeover, whilst providing funding for Gruyere with significant upside on the exploration front.

Even if this was in a takeover scenario, we would be looking at an ~30% premium which would put the market cap around $700 million. Which in this case is what the project has been valued at and paid for 50% paid by Goldfields.

I know some people would have preferred GOR finance the project with debt funding and go it alone. But there would be no guarantee of not been taken over in the process.

This has been a hedging play and giving shareholders immediate upside regarding valuation on the project and keeping future blue sky from the exploration front.

Wonder what the shorters are thinking?