I can’t help but feel that many faithful posters on this site are over-estimating the value of the Lake Carey gold project. Let’s face it – there are many more gold mines throughout the goldfields which have larger reserves and higher head grades of gold. Lake Carey is not King Solomon’s lost mine.
Let’s assume they produce 30,000 oz. of gold and they clear $300/oz. That would equate to a profit of $9M. If the company decided to pay a dividend of 5 cents/share that would absorb $7.2M of the profit – that won’t happen because the company prides itself on having strong cash reserves.
Mining costs are high within Australia and with this project Matsa’s costs will be inflated by extra cartage and battery costs. The head grade of 2 grams/tonne is not “off the Richter”. Matsa’s management costs are very high already. There is no guarantee that they will clear $300/oz. and perhaps that is why investors are being a bit cautious.
I still think that Matsa’s best hope is the Siam copper prospect in Thailand but for now, they cannot proceed with further exploration there. GL to all.
MAT Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)