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20.5¢ wiluna mining corporation limited.

Gold Turnaround Story of 2018, page-2722

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Tcb007

20,938 Posts.

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13/04/18

09:20

Post #: 32428138
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Originally posted by mmoore1957 ↑

I like your optimism and your right that patience is the name of the game with BLK. However I need to add a few more ingredients to the mix:
1. BLK must consistently deliver 20kozs PQ over the next twelve months
2. BLK must consistently deliver a AISC = A$1200/oz over next twelve months.
3. BLK must regularize their Working Capital position back to normal terms & conditions within twelve months.
4. BLK must substantially repay their debt within twelve months.
When they have established corporate & management credibility by delivering the above then the market will award them a MC appropriate to:
1. AU production = 80kozs pa
2. AISC = A$1200/oz
3. Operating CashFlow = A$40m pa (AU = A$1700/oz)
4. BUT MOST IMPORTANTLY: Company Cashflow = A$40m pa
In my view the appropriate MC = A$200m once this point in their life cycle has been reached.
However their is still substantial uncertainty & risk associated with BLK and until this has been dissipated by strong & consistent performance then I suspect the SP will struggle to make any short term headway.
Please DYOR

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What would the appropriate market cap be for be MOY then? They have forecast AISC of $1,600 for the current quarter then reverting back to around ~$1,100
Production is similar to BLK and their market cap is $190m

BLK Price at posting: 7.1¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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