Taken a position here. Not cheap per se vs some other players...

Taken a position here. Not cheap per se vs some other players but given the location and the teams history I think the valuation is probably justified.

Theia being a single pit 1Moz deposit is key here. If you back out the capex and assume it gets fed through someone else mill that increases NPV by $123m. At current spot gold of A$3,100 pre tax NPV sits c. $630m. So adding capex on top that moves it to c. A$750m pre-tax. Or probably c. $550m post tax (with an 8% discount which while probably still low is good vs standard practice 5 in the gold space).

As such even though I say not cheap its trading <10% spot NAV if you assume a takeout. If you add in takeover premium it's probably still <20% of NAV.

Feysville etc look like there is real opportunity to expand the resource base too which is not factored into NAV for Mandilla currently.