Without doing a single calc, my gut feel said 300-350m value...

Without doing a single calc, my gut feel said 300-350m value could be ascribed to this company without getting carried away. I thought 100 for Hillside, 100 for Hog and 100-150 for hope value of possible this and possible that across the two sites.I bought this as a totally bombed out recovery play at what I thought was a good point in the cycle. My entry price was ok, but my timing was awful, so my view is worth almost nothing.

Something I have learned about mining plays is that you can have the most amazing assets out there, but the real value is ascribed by the mkt to the management team rather than the assets, as it is so easy to kill the goose supposedly laying the golden eggs.I have my own view of managemnet, and again that is unimportant, it is how the mkt views the team that decides where the share price sits. I still need to vent, so just quickly endulge me and let me scream that given his performance for years and the massive salary awarded to himself during those times, I wouldn't trust Laufman to run a bath, let alone a multi-million mining operation split across two countries. Now that rant is over, what does the all importnat mkt think?

The timing is right for this story to be well accepted by the mkt, the company has a strong tailwind and in fact the news could hardly have come at a better time for Hog ranch and Hillside. The sector is absolutely in play. Laufman is of course dead right when he says that the countires are great countries for mineral extraction and political risks are lower than many other mining districts. Plus gold and copper are easy sells, they lend themselves well to a story for now and for the future. Iron ore is also hot right now. Plus, Laufman has heap leach experience and Hog is of course a heap leach play with a possible boiling zone discovery bonanza to follow.

The above should make the credit raise easier than at other times, and I sort of agree with a comment that holding on for an inflated value as the share price re-rates itself would be good - with 4m in the bank the wolf is not yet at the door, but everyone can see that funds are needed. With projected IRR as it is, it looks easily good enough to get a project away in such a low interest rate environment. An easier placement is to take a company with these prospects at current mkt cap and sell the investor on the value to follow after the cash injection. So the cap raise could come v soon? Or it may be a jv?

Where does that mean the share price will go? Good growth prospects in a hot sector coupled with a looming cap raise, how much does one offset the other? I'll stick my neck out as much as to say higher than current! I still think the value placed on management ability is key to where the mkt values the company overall. There are plenty of companies with supposed billion plus in assets but with a relatively pathetic mkt cap. The board has already been strengthened in anticipation off all this. This, well sold, could be worth very good money, especially with gold fever getting some institutions hungry for making money.