ASO 8.33% 1.3¢ aston minerals limited

No, I do not think the SP will be directly linked to any sale...

  1. 3,786 Posts.
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    No, I do not think the SP will be directly linked to any sale value of the gold asset. In theory, the value of the gold deposit should already be taken into account and expressed as part of the SP. In practice, I think it has been discounted and the company is being treated as if it is likely to fail, primarily on the basis of the nickel. Maybe not altogether failed but the delivery of Ni is so far out and hence with increased risk, so that there are better investments elsewhere at present (@FrankGermany is a good expression of this).The low Ni price and mothballing of producing mines outside of the Indonesia/China cartel continues to severely impact on market sentiment and especially on ASO with its low grade and high capital cost scenario. Market sentiment and the underlying factors causing this need, to change before the ASO SP shows much increase. A gold sale will give a blip up, all other things being equal but that is all.
    Once the gold licence is sold, then I expect lift in SP but not to the extent of the sale value, because the Ni development will continue to discount the price. In effect, people know that most likely, all of that gold sale will be used up with continuing development of the Ni, and for future cash raising to be needed as well, before production is achieved.
    Sale of the gold asset is just a step along the way. More significant is producing a PEA (i.e. scoping study) followed by a PFS and then DFS. These steps are what will indicate viability of the company and what the profitability is likely to be. Typically a PEA is at 30-35% accuracy (i.e. somewhat broadbrush but a serious investigation, nevertheless). PFS takes it to 20% accuracy and DFS to 10%, as more detailed investigation and planning is carried out. It will be some years before a meaningful (trustworthy) DFS is released because of the amount of complex and detailed investigation required..

 
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