lets not get ahead of ourself, untill DFS is out we are clueless on AAU's AISC and NPV. At least for the first mine we are selling concentrate instead of actual gold and the cost associated is significantly less.
my general rule for (FAIR VALUE) S/P as a function of NPV is as follows.
1) SS/PFS performed, no offtakes, no finance = 10-20% of NPV - Feb or March this year
2) DFS/BFS pilot plant no offtakes no finance = 15-30% of NPV - June to August this year
3) Either of the above with offtakes secured = 25-40% - discussion started/early engagement
4) Any of the above with finance secured = 35-50% China Exim bank provide finance for equipments and 2 other banks engaged for finance (refer to interview with 180 Market late last year). I dare hope end of this year
5) in construction near term production = 50-75%"
I am deep in AAU due to competency of the management and the multiple potential rerate catalysts this year.
There was an article out 8 months ago. I suggest fellow gold bugs have a read (google below).
School of Rock: What are All In Sustaining Costs and what do they mean for gold miners?
AAU Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
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