Simple extrapolation of Breakaway Research valuation, if we take into account all of the options being exercised, giving us ~ 400 million shares, divided it by there fully risked valuation of $70 million, then that is our position at the moment , $0.175 cents per share. If we split the difference between full risk and no risk, $93 million, we are up to $0.23 cents per,,, ramp up production to 60 thousand tons a year $0.345 cents per, 80 thousand tons, $0.46 cents and full capacity of 100 thousand tons, $57.5 cents... Given what they have opened up already with the mining, you would have to think this will be easily achievable over the next twelve months. This is not taking into account reduced cost as tons increase, or reduced risk as mine development continues to prove up more mineralised area. I would think the afore mentioned factors are almost a given IMHO, it really is head grade holding things back for now. When the plant is commissioned next month and head grades start to be proven up in July, we will be able to put a more solid valuation on the company. IF the grade in the valuation can be proven up ( 20 g/t ) then we should see some solid gains in our SP, should they not be able to achieve the 20 g/t then of course that will throw a spanner in the works. My money is on a higher head grade, more like 30 g/t , just going on published panel sampling to date and the company's bullish manner in the way they are planing to go ahead without further CR on the horizon... All my opinion and I could be way of ,, we will know soon enough ....
OGX Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
