Is that correct ProPunter?
100,000 ounces with cash costs of say $450/oz would give cash flow of $75 million, not bad for a $150 million company
Obviously most of that would go towards further development, but that in turn would increase book value, which currently is already $224 million - once again, not bad for a $150 million company.
Should they achieve the 300,000 ounce target, and then factor in lower cash costs, and even without higher gold prices, (which is almost certain IMHO) you're looking at a P/cashflow of about 0.6. In other words, they would sell gold equal in value to their current market capitalisation every seven months!
"Low leverage" you say...!
Add in a very large existing resource in a stable country, and I want to know - which are these companies that you think are better prospects?
Is that correct ProPunter?100,000 ounces with cash costs of say...
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