Remember the stripping costs will be off-set to some extent by the shallow lateric mineralisation and stripping costs in open cast mines can be expensed against revenue once the ore body is reached and sales revenue is flowing. The strip ratio is not excessive as the ore body is virgin and extends to reasonably shallow “surface” depths so this means the stripping can start being expensed relatively quickly in the mine life leading to a more rapidly improving cashflow outlook.
I’m still waiting to top up.
5.5 cents would seem like a good price to add more (if that’s where it’s pitched) given the strong interest from the banks.
Also the difference for me is that I didn’t go near GCY, BLK or WGX, in fact I warned people of the potential risks with GCY and WGX. I didn’t like the BLK story as the “once a dog, always a dog” rule is better respected in this game, given that opportunities are not completely limited. I looked at PNR and always thought it was overvalued so was never tempted there. I don’t like you trying to associated these names with CMM, even though I know you are not doing it to intentionally downramp the stock. It’s my belief that the stock won’t fall into this illustrious peer group and the fact that RRL has already come knocking validates my previous confidence in the potential for this project to succeed. Of course we can’t know the future and you can’t call every stock right and if things can go wrong they probably will, but remember the major shareholder Hawke’s Point shunned an offer implying a value of about 12 cents. They wouldn’t have done this unless they had confidence in the alternative path to obtaining a return on their investment.
A rising A$ gold price will make this project look more and more attractive and the company still hasn’t produced a resource or reserve number for Tramore. As mentioned in some of my historical posts there is potential for a sizable single pit or pit complex to be developed with the inclusion of Tramore so the 8.5 year mine life could easily be extended. You just don’t find these long life opportunities on the market in Australia so regularly anymore. I still also think Bibra deeps might surprise one day after the mine starts generating cash flow for near mine exploration. That single government cofunded hole was actually successful in proving that the Bibra ore body extends to considerable depths. The idea with that deep hole was to target tight folds within the stratigraphy where high grade gold might be developed. I’d say the success they had with that one single hole could easily be very much improved upon once the company is in a stable cash flow position and able to deploy more significant exploration budgets, not to mention the vast regional exploration potential of this new gold field. Good long term outlook all around IMHO. Esh
CMM Price at posting:
6.4¢ Sentiment: Hold Disclosure: Held
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