if austral gold acquires Revelo (looking like a certainty) the short to medium concerns with reserves and life of mine will be alleviated. The ore from revelo’s victoria Sur deposit can be trucked into guanaco. They also have a new deposit Sierra inesperada 7km away from the existing processing facilities. This mine will be limited by the mill capacity at this rate. cashflow secured.
obviously this cashflow will be used to continue buying out strategic juniors in South America, and I expect casposo to reopen now that the ore situation has been alleviated st the cash cow. Casposo will damn near double revenues with silver over $30 and if gold prices edge over $2500 we can start expecting FY earnings that look like 10c/share in this scenario.
rawhide could be a wildcard too, let’s just ignore it for now though and treat any profit there as a bonus.
austral is employing a very smart, unhedged production and cash management strategy where they are holding ounces back from the market to appreciate in value.
this thing is trading like a growth stock now. Up like 300% this year it is outperforming any producers that I know of. We got a majority shareholder/chairman who is very well connected politically and knows how to make money with currency debasement.
things are looking very bright, I can see the stock moving into the low dollars by this time next year and depending on where the price of gold goes we could see ETF’s and general investor cash pouring into buy this now that the market cap is above the purchase thresholds of the GDXJ and similar funds. Warren buffet has signalled to the herd that gold is good again and even pensions like the Ohio police/fire are allocating 5% of assets to gold. Right now the world is underinvested in gold. Only about 0.5% of assets are in gold and the long term average is more like 2-3%.
good luck! I’m waiting for that quarterly dividend to be announced once the cashflow is stabilized.
slap on a growth stock P/E on gold miners soon because they’re going to move FAST under multiple expansion.
AGD Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
