was up 2cents/gerry Found this one in my travels looks like 20c depending on final production out put and costs and current gold price ,
I think we may get another go at this one before this happens
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As a general rule of thumb, a gold company producing 100,000ozpa for 5 years at a cash cost of
A$300/oz should have a market cap of about A$100m, however, MIC expects to be producing
almost 120,000ozpa from BioGold alone and that excludes the Biox expansion. So once the
BioGold SFJV has been signed and received, MIC theoretically has the capability of rising to a
market cap of at least A$120m or so.
A slide was also shown of MIC with 435m shares in issue which implies that a few more options have been exercised.
Post the 57m shares placed and 9.5m conversion of options, there were 409m shares, 15m to come from the CN�fs, 2 x 50m tranches, and options (21.3 + 22.9 + 21.6 + 0.8= 66.6) for a total of about 590m shares (if all the options are converted) which equates to a
potential share price in the vicinity of 20Ac.
Our current target for MIC shares is >>20Ac, and we rate Michelago as a SPEC BUY.
MIC
michelago limited
