Couldnt agree more with you summary copperroad.As i.ve said...

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chookychaz

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21/02/20

10:24

Post #: 43065214
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Originally posted by copperroad: ↑

Things to consider.
The company has stated that they are doing their numbers on $1800 gold and that the project would be economic at that price. The current gold price is A$2450 equivalent. That tells us that the $650 difference is cream on the cake. There is also other profit as its economic sub $1800. This looks like it could make at least a $1000 per ounce. If They produce 30,000 oz pa, that roughly shows us a gross profit of $30m pa or about the current market cap. They are really simply numbers and i am sure they will move about with other input costs.
There is obviously enormous exploration upside across 34 more targets and open current resources. They have just identified plenty of new ones on the new leases. I doubt we could find better exploration ground like this anywhere. Its a proven area.
They currently have a tested recovery rate of 97%. Discount these numbers all you like, the company is very cheap with a 3.4g/t gold grade.
If we take only the current resource of 255,000oz and only recover 200,000 of those ounces, that would provide over 6 years of high grade mine live with these sorts of annual numbers. That is just on what they have announced.
I don't think its a stretch to see this resource doubling over time and then do your numbers. They have surrounding plants so a quick option might be to toll treat. This grade is King. This shows us why smaller higher grade, well located resources like this is so valuable. The resource will be higher than this already as more drilling and assays may not have been added as yet.
Spectrum is another obvious example. It was a high grade discovery without a plant but RMS was close by. They just took it out for feed stock. The cats just look the same to me and that is why i like this model.
The cats also still have approx $5m in cash, so the FES and more resource can be added quickly. dyor.

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Couldnt agree more with you summary copperroad.
As i.ve said before grade and locality are key to this companys long term success.
"the best place to catch a fish is where you caught the last one".
this provence 25 km radius of Kal. is the most endowered area in the country.
Mills for toll treating close by and no costly camp or fifo required .staff will be home to catch the 7pm news every night.

BC8 Price at posting: 37.5¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

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Couldnt agree more with you summary copperroad.As i.ve said...

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Couldnt agree more with you summary copperroad.As i.ve said...

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