You're right, this isn't guaranteed quite yet. The last of the approvals need to be finalised, finance needs to approved and construction/refurbishment needs to be completed. But it's highly likely the first two occur before July. And beyond that, the risk of failure is drastically reduced.
Is there still a risk during the construction/refurbishment period? Absolutely. But the potential downside is limited at that stage. Perhaps CYM takes a few months longer than expected. Or Perhaps CYM runs over budget and needs to raise an additional $20m in funds.
But fundamentally, even with those risks included, the project is far too economical to stay at these prices. A regular discount for most companies post finance would be 25%... If this applied to CYM, the share price could be sitting between 52c and $1.05c...
Even a 50% discount applied to Nifty would see our market cap / share price at a minimum double; and a 50%+ discount is typically reserved for projects with high sovereign risk, like some speccy junior explorer in the Congo.
A 18c share price or below just doesn't make sense. Tier 1 management. Tier 1 location. Tier 1 resource. 75% of the way there. Go figure.
CYM Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
