say npat of 10m on 50m shares gives 20c eps times 2.8pe gives 56c, on pe of 5 gives 'dollar' sp...just Mr Market wanted to see 35c technically and fundamentally AGP's increased holding should give a boost...and the confidence is coming back, I feel...
"The Engenho Project is forecast to produce at an initial annualised rate of 34,000 ounces at a forecast cash operating cost of A$325/ounce. This will generate forecast earnings before interest, tax, depreciation and amortisation (EBITDA) of A$17 million per annum, based on a US750/ounce gold price".
Watch the gold price...
...
Dilution?
"Consistent with Mundo Minerals policy of ensuring effective financial management of the business, a temporary bank facility has been established. This short-term facility, which does not involve any gold hedging, will provide a short-term facility to assist with funding all operational costs at Engenho, ongoing development at the Torrecillas Gold Project in Peru, as well as exploration activities at the Tocantins Joint Venture and newly acquired Jaqueira Project in Brazil, as well all corporate overheads while the production cycle is properly established.. The Board believes that the implementation of this short-term funding facility is a prudent strategy which will not impair the financial robustness of the Company or involve a dilutionary equity issue in the current market conditions. Consistent with the effective financial management of the business, all major exploration drilling activities at the Company’s projects have been deferred until August while cash flows from operations are established".
Quality management? Yes.
MUN Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
