re: outstanding news
supertramp - agree with the potential for $20m free cashflow from the gold ops. If they get to the $8m for west mandilla which with recent mining results look pretty likely, and east has > 1.5 times the oz's as west mandilla (25K oz vs 16K oz) and is also high grade and shallow then $12m profit for mining east mandilla sounds possible.
They've also intersected much higher grade bedrock gold at greater depths (60m) so the potential for additional cashflow from mandilla is definitely there as well.
If the company generates $20m free cashflow from the gold mining over the next 2 years then as you say, koongie is valued in current share price at only $17m dollars.
Given that the 2003 prefeasability for koongie showed operating and capital costs to develop would be around the $175 million mark, and at current prices the project has potential to generate $600 million cashflow, it is understandable that the directors made the following statement in their third quarterly report:
"The Company believes that the potential value of the Koongie Park asset is largely unrecognised by investors, given the current market capitalisation of the Company."
sounds like an understatement to me.
AAR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
