There is a similar gold miner based out of Kalgoorlie Beacon Mining ASX Code: BCN
BCN recently announced a resource upgrade to just on 330,000 Oz
This was after its recent purchase of the Macpherson’s Project containing 176,000 oz of gold. It is located a distance of 45km from Beacons processing plant. Prior to the acquisition annual production was 30,000 oz and now likely to increase to 50,000 oz
Beacon has a market cap of $140m and after deducting about $20 million spent establishing it’s original mining operation and processing plant the MC gives an implied value of about A$360 per oz of gold.
Beacon is an open pit shallow mining operation with modest grades.
Assuming GML reaches its goal of 1,000,000 ounces in resources we can use the Beacon numbers to estimate a likely market cap once operations commence.
A million ounces gives a $360m value, let’s deduct $60 million to establish the mine and processing operation leaving $300 million of value for shareholders. This equates to about 15 cents per share based on the current 1.9 billion shares on issue.
Lot’s of assumptions in this, but entirely reasonable.
From here to 15 cents means GML would be a Disallowed.
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