Andy White Pit (4-5 years) and Stockpile has NPV $210m. EQR's share is $173m.
Project de-risked (has funding, small scale production with cashflow, opex based on real production, has team in place, offtaker & little debt), assume market cap of 60% of NPV. Mkt cap of $103.8m. Shares plus options 1.4bn. = 7.4c per share.
This assumes no additional resource is added to the project.
Likely an extensive drilling program is coming due to the cash in the can Adding West Dyke, Underground option and Iron Dyke. If this adds a further NPV $100m @ 60% = Mkt cap $160m = 11.7c. per share If it adds NPV $200m @ 60% = Mkt cap $223m = 16c per share
EQR Price at posting:
4.6¢ Sentiment: Buy Disclosure: Held
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