Hi Brass,
I work out potential share price based on the market cap, peer comparisons, resource, potential exploration upside, and what I have previously invested in. The MC at 15c is around $60 mil, so MC@120 = 30c, MC@18o = 45c, MC@240 = 60c. With a strong gold price (key), decent resource, exploration potential, good all in production cost a market cap of 100 to 250 million is not an unreasonable prospect.
I see GRY as probably on the nose a bit due to their massive mismanagement of money and disingenuous reporting of resource, was a narrow view high grade deposit which was only just made clear, check out previous modelling reported to the market, didn’t make sense as GRY were making it look like something it wasn’t.
The ore body looks decent and you would expect high grade narrow vien that doesnt look to pinch in and out to continue at depth.
Now that GRY have been a bit more honest about their ore body and announced its narrow vein high grade you can get a better idea of what they are sitting on and why they were looking at heap leach. Its clear they don’t think they can open cut mine the narrow vein without ore diluting with waste. This is mainly because they don’t have the blasting expertise as it can be done with convention blasting, just takes a bit of talent and go which the engineering component of the mining industry is seriously lacking.
I would like to see GRY bring the underground further up in the mining cycle as this suits the ore body better and exploration will be more successful and cost effective from underground.
Key here is gold price, if the current price rise turns out to be more than gold trading in its current range then GRY should see its previous numbers. I like the 40c & 60c mark as its obtainable MC wise, and are previous support/resistance points.
71c4
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