Gawain Production ?

Lets make a few assumptions based on historical production!

Lets assume the Gawain pipe has been dewatered on schedule and the small scrubber is operational.
If initial production for the next TWO months will be at least 2,000 cts per month, we can assume that once new large scrubber (3 to 4 times capacity) is commissioned by 1 June, production should at least triple to 6,000 cts per month.

At USD 400 @ ct, the next 3 months will give gross revenue of USD 4 million and then USD 2.4 mill per month from July 2018 onwards ! Gross Revenue in excess of A$ 38 million for FY 2019.
Assuming net profit after costs of 50%, we get to net annual profit in excess of A$19 million.

I have made many assumptions, but I believe ALL the assumptions have been on the conservative side.

I have not allowed for increase in production due to the following:
- introduction of additional scrubbers
-introduction of additional XRT machines.

Once there is confirmed monthly cash flow, watch the Gutnick wheel operate. I remember the Great Central Mines days.

If we use a P/E ratio of 10, we will be looking at a share price of 6 cents+.
Here again, I believe a P/E ratio of 10 is much too low.

Watch this space in coming weeks.