Mcap: 40.8m x @ 5.4c
SOI: 755957997
Cash: 12m at 30/9
Following expiry of listed options on the 31/12/2016 (strike price 3.8c, 95% converted, 5% taken up by private underwriter) there was a refilling sell order at 4.9c for a week or two that took considerable volume to get through. As of today this seller appears to be finished.
Also the share price dropped significantly after an announcement on the 12/12/2016 informing the market that Challenger would not meet targets for December, with mine development behind schedule and that they were not expecting to be in profit for the half year (which included considerable capex for Tarcoola's development and overhang from Challenger's start up in May).
As a debt-free highly leveraged gold producer (in terms of AISC), at the current gold price and depending on meeting production targets, they are trading at an EV/FCF somewhere below 2 which I believe is the lowest of all Australian based gold producers listed on the ASX.
Catalyst: Iceberg seller gone. Quarterly will likely be out within the next 30 days which may alleviate concerns on Challenger production targets and should provide info about Tarcoola production which has come online during December.
