Firstly, that is a great analysis Kalenn.
John Lamb had previously forecast that the PFS would be bullet proof and it has not disappointed. This document is evidence that this is a robust project and the economics showing a highly profitable operation. With IRR 30%, NPV A$828m on the starter pit with 13 mine which is based on only 26% of the known resource.
Keep in mind that this resource is growing a a rapid rate. This is not green field exploration....we are talking a mining area which has been know to have been mined for 600 years. Its only now with modern exploration techniques that they are proving that previous mining had only touch the surface.
The upside over the coming year is unlimited. But we already known that and so does legendary geologist Mark Creasy who is one of the major shareholders and can be credited as one of the people who have started this project.
Nice graphs Kalenn, which show MYL on current known resource will put shade on the largest lead mines as well as silver mines in the world. What's our current MC, I ask? I suggest that it can only go in one direction from here.
The graphic (above) shows the upside here as the starter pit (green) being only a small part of the known resource. Its highly profitable in its own right and look at 9 other anomalies to come. Yegon Deeps for instance is highly anticipated. There will also be copper as well, and my tip is that there will be alot of it. MYL could possibly be sitting on one of the great copper resources hosted within the rock below the current resources.
This company has takeover target written all over it IMO. I look at the current MC at around $100m and I then look at the NPV on the project, the drilling success this year (and yet to come) and I look at this PFS and I know a re-rate is coming. I know we have smelters in the immediate area wanting product and I know we have great local companies as partners to the Bawdwin JV including Perilya who have strong experience in these types of projects, have deep pockets and also happen to have a seat on the MYL board.
All going to plan. This is a strong buy for me.
All IMO.
