Announcement that we are re-opening the Casposo silver mine...

Announcement that we are re-opening the Casposo silver mine should do it. It diversifies output to 3 mines in 3 countries and makes silver a major income source.

In 2018 Casposo produced 11564 oz of gold and 1.2 million oz of silver. In 2017 it produced 16793 oz of gold and 1.4 million oz of silver.

In today's prices that is $A31 million of gold and $A44 million of sliver in 2018 and $A45 million of gold and $A 51.5 million of silver in 2017.

If you annualise the March quarter numbers from the existing Chile mine (because of the strike in the June quarter) annual production runs at $A180 million of gold and $A13 million of silver in today's prices.

There is also the share in the US mine running around 10000 ounces gold equiv annualised worth $A28 million at today's prices.

So the annual value of production in today's prices would jump from just over $A200 million to over $A300 million and silver would move from a minor by-product to around 20% of production by value.

With a market cap of $A136 million there is plenty of upside.

How much it will cost to re-open Casposo, the operating costs and how long it will take to start production will be important. It was only closed at the start of 2019 so you would hope it would not need a lot of work to re-open.