DFS catalyst for share surge, page-2

Because it is a development project and with associated risks, the full NPV will not be reflected in the market capitalization until Sal de Vida is producing at nameplate capacity. Having said that, I think everyone will agree that the DFS will have a positive impact on share price. $GMM having accepted, in principle, a tiny 10% premium is as big a clue as we will get that the DFS is very, very robust. I could certainly see a 15-20% bump on release of the DFS but expecting immediate torque beyond this is probably wishful thinking. The rise will be gradual.

It really helps that the CEO has crafted a careful strategy to sustain share price momentum - e.g. Fund rebalancing in 3Q16 following an updated DFS in late June; HKEx listing in July to bring in a whole new class of investors; Low hurdle milestone production in July (ore is already stockpiled, no blasting and mining needed); Expected supply tightness emerging August-October; 2016 off-take prices negotiated in 4Q16, etc etc.

$1 pps by y/e is not unreasonable.