Sorry but my valuations are forward looking. Show me where i've...

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CaptainGrumpy

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17/04/18

10:51

Post #: 32499293
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Originally posted by iminvestor101 ↑

While it’s interesting seeing you guys discuss grades and strip rations on comparisons, can you give us your thoughts on the balance sheet?

My take is 29.6m in bank, debt reduced 20% in quarter. With production increasing and milling ores growing at the same pace as last months, albeit with higher grade, this would make this a viable operation pre expansion. I talked to him Friday’s and consensus is they will have 1.5 grade averages with 3yr LOM currently.

What about all their other prospects? Are they also uneconomical as you say? If any mining company underwent the striping ratios because of wall collapse and flooding, for them to have this production turnaround is a true representation of where this should be. Their loss making was not due to high stripping ratios and low production, those are effects of the one off event previously.

IMO this is why it’s hard to agree with your estimates. Not one mention from you of the significant operational costs incurred as a result of a weather event. Where are all those millions in your analysis? Have you just discounted that cost across all mines moving forward? How can you even assume valuation at this stage aside from what is actually in the deposits, that we haven’t even drilled?

I think you’re running out of amunnition because ultimately, we are now where we should have been last July. And by this time barring the previous weather event, we should be at .15 cents IMO. Excluding further potential growth which is still unknown. Current production says a totally different story than you’re trying to paint.

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Sorry but my valuations are forward looking. Show me where i've based a valuation on last year's data?

15c would leave you with a higher EV than the DFS NPV. How could you possibly justify that? Please don't say earnings based valuation because that would be a reckless method at this stage of the project given the level of missed guidance.

BLK Price at posting: 7.8¢ Sentiment: None Disclosure: Not Held
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Sorry but my valuations are forward looking. Show me where i've...

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