Cash at end of September quarter was $1.8M plus $0.5M raised in December mostly from management, for a total of $2.3M, so these folk have lots of skin in the game.
The sale of the Victorian gold interests to A1 Consolidated was for 169.7M shares plus 56.5M options currently valued at $0.04 or $6.78M. 50% of the shares and options will be distributed to current shareholders, and balance kept by ORS.
That equates to 1 AYC share for every 2 ORS shares, at $0.04 that equates to $0.133 per share valuation for each share in ORS.
So current ORS buyers at $0.012 are buying ORS at cash backing plus $0.0133 in AYC (free distribution) and $0.0133 in AYC held be ORS. That is $0.038 per share of assets.
AYC has a high grade Victorian gold mine that will utilize the Maldon plant for processing at a rate of 150,000 tonnes per year. At current A$ gold price we are looking at spot sales well above $1,500 and highly profitable. Will look at the AYC numbers for A1 Consolidated in next posting.
Yesterdays announcement confirms that there is continuous narrow vein gold at 1100 and 1080 levels. My guesstimate is that there are around 3,000 ounces that can be extracted quite quickly. At $1,500 that is worth $4.5M. So the Maldon gold can be extracted before the AYC owned A1 Consolidated ore comes on stream.
AYC has also purchased the remaining ORS gold assets in Victoria, and at above $1,500 they become economically payable.
My guess is that ORS must be worth $0.038 per share just on current assets, and before we start factoring in the run in gold prices, and increase in value of AYC which will follow shortly. Good luck to all longs
ORS Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
