Greenvale Mining Ltd - Overview
Financials
The company has approximately $4,780,000 according to the presentation which is plenty of cash to get this thing to the next phase in my opinion. They have NO options which is good and have 67% of the shares held by management and institutional shareholders making it a tight registry considering total shares on market is only 341,000,000 total.
Location
The mines are in central Queensland and the Northern Territory which is great for investor as to no overseas issues will interfere with the development of rare and valuable torbernite and exploration for large scale IOCG deposits. But my interest is in the Bitumen considering Queensland are pumping the road works now all the way down the Bruce Highway and more still to be announced soon by the premier.
Opportunity
The fact that they can produce high value, high quality products from the one process is fantastic. Please refer to image below from the last presentation.
Opinion
Looking into this stock after reading through the presentation this will definitely be a good long-term investment. The scoping study did say the mine plan was for 7mt, 10 years at 700kt p.a. The price of Bitumen now is approximately $485 AUD per tonne. So, if they can only produce 20,000 tonnes a year then we are looking at $9,700,00 per annum just for this material.
Well, considering the 20,000 tonnes per annum will probably ramp up to 100,000 tonnes or more per annum, then now we are cooking. This does not take into consideration the other two materials of light crude and active carbon which I will do some more research on the active carbon, because this sounds interesting...
Target
I would think that in 12 months’ time we might see this thing head north up to 30 to 40 cents a share as we get more information about how the company is doing with resources and offtakes. Now, if by chance they get an offtake agreement for more then the 20,00 already, in the meantime, well let us just say hang on for the ride…all in my opinion only investors.
This one is worth more research…will post again after further technical and fundamental research has been completed on Greenvale Mining Ltd.
Have a nice day.
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