MKR: The Best Silver/Gold Play on the ASX., page-162

@Gratton44

totally legitimate criticism.

but as i said the other day you have to parse the difference between cashflow vs nta then decide whether stock is fair value, cheap or expensive

i dont think there is any doubt that it was a gyppo ipo - big overpromise on cashflow and the readthrough on mgt quality to me is cowboy to this point in time

against that though you've got
- mill that would cost ~$120M to build new today I;d say
- ~38Mt low grade silver stockpile of 52Moz - which unless its degraded significantly from weathering - should be worth at least what ARD/SVL's in ground value is

those 2 projects carry an implied value of ~$1.85 EV / Silver resource ounce currently

So = $96.2M mark-to-market value for the silver stockpile (and good condition stockpiles should really be worth much more than unmined resources)

So the mark-to-market NTA of the stock is notionally $210M + Mt Boppy + any other asset values.

At 51c sp MKR EV (inclusive of debt) = $166m

So basically stock is trading at ~ 40%+ discount to NTA

i think you'll find that others will follow this line of thinking - largely disregard the short term mt boppy gold revenue outcomes absent major over/undershsoot March qtr - and focus on ~750,000koz silver production second half rising to say ~1.5Moz next year

And obviously if mgt starts to get its act together then their actually 900kozpa/2Mozpa silver forecasts will start to get re-priced in

and then you;ve got some wonowinta deeps exploration upside when the actual assays come back