Leveraged gold producer on a PE of 1

From the annual report

Gross Profit was $6.7m
Profit was $5m including one off financing costs of $1.1m so this would be $6m Profit excluding the one off financing costs


Milling Campaigns For the twelve months ended 30 June 2015
The Company sold 9,229oz at an average price of AU$1,459oz at an average
C2 Production Cost of $647 per ounce. Fully Allocated C3 costs per ounce for the same period was $761.

Margins were around $700 ($1459 - $761)


Remaining Gold
Broken ore stock on hand at end of quarter available for milling of 26,681 tonnes at an average head grade of
11.16g/t Au for a net estimated recovery of 8,139ozAu.

Current gold price = $1,600/oz
Forward Margins = $840/oz

Expected future profits  = $6.8m Gross = $6m Net Profit (assuming $800k admin costs as per 2015)

Will leave the company with $7.5m cash vs $6m current Mkt Cap and importantly have proven operators who took a small but high grade open pit deposit and were able to toll treat it to extract value

The big upside for this company will be unlocking further development and production opportunities