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Nowhere Man

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23/09/18

20:47

Post #: 35785904
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Originally posted by miningman2012 ↑

I am struggling to see the viability of this Geko operation

According to the FS total costs of $99m on a $127M revenue and a few million in establishment costs

This includes haulage @ $7 odd tonne so can only be going to a close mill for $7/T. We now know its going to the mill out on the Kambalda road so haulage is going to be significantly higher. Yes this is for the first parcel but doesn't match FS. Going to that mill costs likely to be double the $7/T
Mining contractor financing mining until revenue producing-How long will that be? This wont be for free. And given the very high strip ratio and very low grade of the resource it is going to take a very long time for this to be cash flow positive

10% of first 25000 oz rev to BNR

In a booming mining market, very high strip, low grade project together with a management team that have no proven record and absolutely no money, by the time royalties, all contractors and financiers are paid is there going to be anything left?
Is there enough to pay all the above

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Mate, I don't think anyone's claiming the Geko project as it stands is the ultimate company-maker.

But it will deliver CM1 a handy swag of cash, even given the constraints you mention.

For a minnow just off the blocks, "FS total costs of $99m on a $127M revenue and a few million in establishment costs", still amounts to quite a reasonable war-chest.

Concurrently, the Company has some pretty good real estate to explore, so let's see how things progress.

As to management having "no proven record" ...well, aren't you being a bit tough there? Looking at their CV's (http://www.cm1.com.au/) the Board appears at least as well qualified as many - better than most.

And isn't it a tad mischievous to suggest the Company has no money? It's barely had time to spend what it raised in the float.

And we're not so very far from seeing the the first gold bricks emerge from Geko.

CM1 Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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