Fascinating reading. I particularly like the bit that says new financial modeling has the mine more profitable than the first lot which was impressive then. Price of zircon has risen since the first one. If the proposed nuclear power stations take off around the world zircon will rise even more.
I like the fact that 40% of the zircon has been forward sold. To me this makes them even more a take over target for Illuka. Illuka will have 60% still left to meet their own orders but the risk is diminished by the 40% already sold.
Back of the envelope calculations suggest an extra 100 million shares should cover all costs. This would leave GUN still under two hundred million still less than a quarter of Bemax with a richer, cheaper to run mine, closer to transport (they will be shipping through Geraldton) and closer to Asia where the main customers are.
Share price should start to rise particularly after final approvals and finance May, June.
If you were going to take over GUN cheaper to do it before the capital raising one would think.
Regards,
Pagarsi
GUN Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
