At an SP of A$3.79, Capricorn (CMM) do seem to have an...

At an SP of A$3.79, Capricorn (CMM) do seem to have an extraordinary market cap – A$1.4Bn – given that they are only expecting to produce 122k ozs of gold at 100% owned Karlawinda this year.

Something which on the face of it seems within reach of Antipa in due course, given that our grades seem to be much better, 1.6 g/t versus 1.1 g/t or so.

And we also have those hefty by-product credits to boost cash flow.

CMM did an optimisation study in 2018 and calculated the NPV as being A$243m based on 7 years production. So now their market cap is now 6 times that NPV, you don’t see that very often, do you?

Granted they have made terrific progress and are already in a net cash situation, having paid down their debt.

But there seems to be something else exciting the market to get such a high rating, a mgmt team with a strong track record perhaps? Or likelihood of substantially increased resources with more drilling?

Looking at Newcrest with their market cap of A$16.6 Bn, producing about2m ozs of gold. Pro rata if we get 6% of that production level in say 3-4 years (120K ozs) should we not be looking at a market cap of say A$1Bn for Minyari alone?

Well maybe when we have the debt paid off etc.