From the Eureka Report yesterday 1/5. This will give us some badly needed exposure.
Chesser Resources (CHZ)
"Chesser Resources is another that is likely to appeal to international bidders as its Turkish project is showing decent grades and scale, according to Bain.
The explorer has around $3.5 million cash left in the kitty and is likely to need more in the not too distant future given that it has an ambitious drilling program for the year.
Like Indochine, Chesser has flexibility in developing its project that would make financial sense even in a low gold price environment.
The explorer estimates that it only needs $US88 million to produce 63,000 ounces of gold a year for six years, and at an operating cash cost of under $US500 an ounce of gold (if the silver was sold to offset the cost).
Even at a gold price of $US1,300 an ounce, the payback period (the breakeven point) for the project would be a modest 1.9 years.
If the gold price were to stay high, Chesser could dig deeper for gold to extend the life of the project.
This flexibility, coupled with the relatively low capital requirement and Chesser’s modest market cap of $32 million, would make the explorer an ideal bolt-on type acquisition for a larger miner."
There was a brilliant article in the oil context I read about how easy it is to do business in Turkey. Damned if I can find it again but it removed my main fear for this one. Turkey is far friendlier than Aust. Low tax - politically stable - pro mining/investment. No Govt U-turns in policy - no Julia Gillard.
CHZ Price at posting:
20.8¢ Sentiment: Buy Disclosure: Held
