Moho ‘one of the undervalued ones’, page-33

Although I would encourage people to be careful how much they pay up for oppies (and I have a good parcel myself), I think upwards of $1 is not unreasonable.

It starts with Sampson Dam getting to production and the company confident and studies advanced. I have shares atm in REZ who have a project I think is comparable with Sampson Dam in scope and a little bit further advanced towards production. REZ released a scoping study in Dec 2019 with an estimated capex of $13mill for their open pit plans. Separately I have shares in REE who have a JORC rare earths resource on which they believe they can set up a mining and concentration operation for under $30mill. That’s to produce concentrate to sell and it’s a different material but rare earths are more complicated than gold. So I reckon Sampson Dam open pit may be similar capex to finance to the range of these 2 projects.

Let’s assume $30mill to get things going (and it could be quite a bit lower which improves the following numbers). If MOH get mc of $30mill or around 50cents, prior to raise and need equity of 40% or $12mill then we’re talking issuing shares of around 24mill magnitude. That sees us with 80 million shares but let’s round that to 100mill to account for exercise of options (21 mill). All rough numbers.

if project can match REZ most recent scoping study then we might be looking at $10mill a year free cash flow for 5+ years (we don’t yet know how large Sampson Dam might get). That is a LOT of exploration of our tenements without additional cap raising plus $10mill a year free cash flow should be worth 50mill mc underneath blue sky from our exploration. ie minimum 50cents share price at 100mill shares.

It would be easy for smart management to seriously increase the value of the company from there - exploration, acquisition etc all possible with free cash flow and controlled dilution.