Hey all.
I was perusing some other gold stocks, and came across a PFS with a very high strip ratio of 10.6 : 1.
Yet their AISC is projected to be AUD $1200 an ounce.
So I thought, ok how good is CAIs project (market cap $38m), as compared to the above stock (with an MC of $70m) and CMM (market cap of $315m)(what I view as the market darling of developers).
CMM (4.7 : 1)
versus
CAI -
or, one I just noticed (and mentioned above)
BDC (just released)
The conclusion I come to is not particularly surprising.
CAI is being totally ignored, yet... the value is surely hard to miss.?
Over the past 5-7 years, without doubt, the big end of the gold sector has done amazingly well, yet... explorers and developers have lagged, hugely!
Yes, there have been a few winners, and losers that have made it so much harder for developers to actually get off the ground.
However... without wanting to sound cliche, I think this time it will be different.
Yes, again, the big end of town are generating huge cash flow, yet, they are burning through their reserves, and whilst many are replenishing them, they are not growing production rates internally.
The huge upside is gone from the big end of town, even the mid tiers have seen their re-rating, yet... here sits a genuinely developable project, with the right team... but no interest. This will change, as there are so few quality projects based in the safe jurisdiction of W.A.
