Market cap $138m already accounts for 'immense dilution'.Is...

Market cap $138m already accounts for 'immense dilution'.

Is $138m market cap undervalued? If NPV hit $1b USD (pre-tax), I'd say it is. My peer comparisons showed that the company would be due a market cap of about 1/4 the NPV, based on their current maturity stage.

But the main question to quite accurately predict whether the SP would rise: is not whether the news is good or not (because good news could already be priced in), but would the news cause you to buy more (which in fact drives the SP up).


If NPV jumped from $350m USD to $1b USD, and the market cap was still $138m AUD, I might buy more (if I was not worried about them running out of cash, and I thought the plan was likely to get funded to mining, or for NPV to rise further for a possible takeover).

If they had another hit like RPM, but outside of the current RPM North high grade zone (RPM middle, South, Train, Cathedral), I'd probably buy more.