The company is only worth 56m now which I believe is fair value for Murchison.
If Murchison can hit targets and produce 31koz at $1075/oz going forward, that's 17-18m profit per annum at current gold prices. We can then add heap leach operations once drilling sures up more low grade resources. That is another 12koz @ $500/550oz; ie another 13-14m per year.
If we can do all of this without raising money, then that will be exceptional given the problems we faced. I however feel we might have some sort of capital working facility of maybe 5-10m.
Still, good buying down here given that we also have Jervois, Andash and the Solomon island project. Andash is not costing us anything (due to our equipment being leased) and neither is the Solomon Island project with the agreement signed last week. So only other cash burn for now will come from Jervois FS and admin.
KGL Price at posting:
40.0¢ Sentiment: None Disclosure: Held
