firstly, technicals:further to the inverted head and shoulders i...

firstly, technicals:

further to the inverted head and shoulders i posted on the other thread, there is a golden cross emerging. this is a powerful bullish signal. it failed on the last instance owing to the 2.7c SPP, which pushed the sharprice out of its recovery and back below the 50DMA

this time around, no external forces should impact the move (excluding results from adelaide hills, which the annual report indicates is going to be taking up all our time this year - suggestion of positive initial results?)

once this closes north of 2.7c, the inverse head and shoulders is complete, and the next targets are all gaps north of 5c.


now fundamentally.

"The average grade for Bird in Hand of 12.3 g/t gold makes it one of the highest grade undeveloped gold resources in Australia."
DRM found a similar size resource in Meekathara and their market cap jumped up to $50m

the pathetically underpriced $22EV/oz valuation (compared to industry average of $174) makes this one of (if not THE) cheapest high grade gold resources in the country.

within the month, we should know whether MXR are in fact looking at a 500k oz high grade resource. at $174EV/oz, that would mean a market cap of $87mill for a shareprice of 33c (12 bagger?? on resource alone??)

at the expected high grades (15g/t), this would still be cheap.

And there is also now the matter of only a couple more months of trial production at Sellheim before it moves to full capacity.

by the years end, Sellheim will be on track to earning $3m pa for a profit in excess of $1m, enough to fund admin expenses and some exploration costs.


current sp 2.5c = $6.5m

gold producer, high grade gold resources, IOCGU assets (windimurra) and more...

no time like the present