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20:10
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Originally posted by mikesz
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Thanks for the vote of confidence. Obviously all IMO and not an investment advice. But I like what I see. 2017 issues now well in the past and their forward guidance is actually really conservative so looks like they've learnt from past mistakes. Looking nice and solid for a decent run into the 20c range. DYOR pls. It's all there in black and white. Just pay attention to metal reserves not overall resource and to their ability to increase those reserves to keep the mine producing Au. Selling Au then is a gradual release to market when prices are right while stockpiling the stuff for later. Tenements are also key. Look for good grades around 10g/t or higher. That's generally considered very good. Up to 5g/t is ok but requires much more filtering work and is more expensive. An AISC of $1100-$1200 (all in cost) is also very good. So margins around $450-500 aud per oz are really good. I did a fair amount of research and background work on what to look for in gold projects and how to value them. This is right up there and already producing and selling so business model and path to market is proven. This opportunity is very different to some of the others we've been looking at recently. Given cashflow BLK can now be valued as a growth stock generating cash so using EPS and PE multiples. I tend to use 10x as a conservative guide but this can be higher for proven projects with massive metal reserves. IMO 20c is an easy target. Might even get to 30c just through sheer FOMO. Probably towards end of 2018 or early 2019 once BLK can show a consistent track record of Au production over the quarters.
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i needed leverage to gold anyway just incase the world falls in a heap...looking more likely everyday. then you serve me up a profitable producer at 5c with low mc
