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20.5¢ wiluna mining corporation limited.

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DonaldFrump

3,161 Posts.

562

25/01/17

14:59

Post #: 22135853
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Originally posted by rumbai12 ↑

I think people need to focus on market cap rather than share price. BLK was oversold leading into Xmas and has now recovered. It has achieved commercial production however 75k - 100k oz per year should be used for valuation purposes and not 200,000 0z yet.

Market cap around $250m - $300m is probably the upper limits on a value based model.

If you focus on 10,000 oz per month with aud margin of $400 in 2017. That is 4m cashflow per month or $45m - $50m pa. That gives $300m.

$0.90 - $1.00 per share.

This may take 3 months to get to and will be affected by POG fluctuations.

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Question - how did you conclude the $300m market cap based on $45m-$50m p.a. cashflow?

BLK Price at posting: 73.5¢ Sentiment: Hold Disclosure: Held
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