Some quick calcs. Say the JORC comes in with a mid range estimate of 48,000 tonnes, or 105,600,000 lb. Alliance share comes to 26,400,000 lb. Assign an IGV of US$10/lb and you get Alliance’s share valued at US$264 million or about AUD$1.32/share. This looks low, but don’t forget the low IGV used here, the fact that AGS is very likely to go into production soon (which will command a premium), and that only 20% of the B4M resource is covered by this JORC estimate – and ongoing drilling is still expanding the entire deposit as we speak. So we could conceivably multiply that $1.32 by 5 or even 10 (if the IGV was to be put at $20/lb), and don’t forget Maldon and of course the Warrina project too.
Just off the top of my head – someone might like to kick these numbers around a bit.
AGS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
