Actually I felt the annual report said quite a lot and maybe the "post balance date" info should have come out as a separate ann. But right now I feel better informed than I have for a while.
If we look at the 23rd Aug ann they said they'd processed 6695t and at 29th Sep they'd processed 18859t. The total high grade ore extracted looks similarly on track. They're still saying 2g/t.
While I would hope soon they'd give numbers showing actual ounces extracted and money received, the last two anns are the first to show signs that the company is heading back on track. If thing really go well then they're pulling $2m a year and are sitting on a 1.3Moz reserve (0.9Moz meas+ind). The company therefore justifies its market cap on current mining and has an EV from its in ground gold of nothing (which has always puzzled me, even with recent misfortunes- if the rest of you can explain it to me that would be great).
While I'm not going to throw my life savings at them just yet, the last two anns have restored my faith and I regard the company as a far less risky proposition than three months ago.
So let me be speculative. The company has an in ground resource of 1.3Moz and should be self funding for exploration. If we assign an EV/oz of $10 that gives an mcap of $13m and a share price of 6.5c which isn't bad. But $10 is pretty low, certainly by Australian standards (I'll need to do some digging to work out typical South African values).
Sound fair?
WWI Price at posting:
1.7¢ Sentiment: None Disclosure: Held
