With Silver going ballistic overnight I can't see this pulling back much further.... I'm in for round 2 at Wonawinta.
At 25c this has a mkt cap ~$62mil plus (250mil shares on issue) and about $26mil of debt (due in next 8 months) - which it should be able to pay down through the Mt Boppy gold. After that they get started on processing the silver at Wonawinta. At a current silver price of $30AUD they are making about $15-16AUD an ounce. And I'm estimating (conservatively) they'll process around 1.2mil ounces of silver a year (they want to do 2mil). My figure gives them a profit of about $20mil a year on the silver (if silver stays at this current price).... and they have got a lot of silver to get through (many years worth).
So with silver at this price, if they keep the plant operating at a steady rate then I can see them conservatively having a mkt cap of $120mil+ in
6-12months time.
Please bear in mind, a couple of predecessors have failed at Wonawinta (eg; CCU) so always DYOR.
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