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20.5¢ wiluna mining corporation limited.

short term target approx 15c, page-4

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nihilism

11,400 Posts.

565

09/03/18

03:31

Post #: 31635631
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Originally posted by marco62 ↑

Current marketcap is $67M. Based on the previous two months they produce 6500 ounces/month. At a margin of $700/ounce, this is 57M revenue/year. They indicate in their resource estimate 1.2 million ounces or 15 years at the current mining rate.
For a small mine with a limited resource like this one a PE of 6 or 7 is fair. This represents a marketvalue of 342 million, so 5 times higher than the current marketcap. This allows for a shareprice of 40 cts!!

Everything above is set to a very conservative scenario. So short lifetime, no increase in production etc.

But we know that Blackham is seeking further opportunities; that they expect a higher resource volume from the current location; they aim at higher volumes/month. So when they closed off a period of negative surprises and are opening now the chapter of positive surprises we could be in for a great ride!!

And no, I do not expect 40 cts to appear tomorrow on the boards. Once you have disappointed your shareholders it will take a long time to restore confidence again. But with this outlook I am prepared to wait.

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Conservative?

Profit margin at current prices is targeted at 450... market cap is closer to 100million at 8c also (undiluted) or 136 million fully diluted

BLK Price at posting: 8.1¢ Sentiment: Buy Disclosure: Held
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