is ccu best value silver (or any) asx miner?

is ccu best value silver (or any) asx miner?

CCU has today announced that is has received the DA for its Wonawinta Silver Project. Another step towards CCU being Australia's newest pure-play silver miner (with first silver pour forecast for December this year).

The financial metrics for Wonawinta Silver Project detailed below are stunning. (All data taken from latest CCU presentation posted on ASX website on 23 May.)

Silver JORC Resource: 51M oz (with significant exploration upside potential)

Silver JORC Reserve: 14M oz (reserve enhancement from existing reserves based on higher silver prices currently under way).

Forecast Annual Production: 2.5M oz per year

Forecast Mining Cost per oz: <$10/oz

$65M forecast annual operating cash flow (at current silver prices of AUD34/oz)

Forecast capital payback period of less than 1 year! (also at AUD34/oz)

Current EV of only $140M (Fully-diluted Market Cap at $0.85 per share of $157M less $17M cash => EV of $140M)

EV / Forecast Operating Cashflow Ratio: 2.2 (yes 2.2!)


If there's a better value (soon-to-be) small cap miner on the ASX then I'd be very interested to hear about it!

K