Ann: Excellent Gold Recoveries from Initial Metallurgial Testwork, page-16

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estate09

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10/07/17

22:32

Post #: 25779555
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Originally posted by eshmun ↑

Just some calculations.

Westgold paid $8.5 million ($6 million in cash and 1.25 million shares in Westgold) for the Tuckabianna Gold Plant and 524loz of gold resources (Indicated and Inferred categories*). Without putting any value of the Tuckabianna gold plant that equates to $16.2/resource oz.

Just recently KIN acquired the Lawlers 800,000tpa processing plant for $2.5 million. Based on the sale value of Lawlers the 1.2Mtpa Tuckabianna plant could be valued at (1.2Mtpa/0.8Mtpa)x$2.5 million = $3.75 million (assuming the value scales in simple proportion to the relative production capacities). So with this estimate for the value of gold plant Westgold paid $9.1/resource oz for the resources that came with the plant.

Westgold also paid $1.5 million for SLR's residual 20% of the Cue Project, valuing the entire Cue Project at $7.5 million (MGV's EV = ~$13.5 million assuming they currently hold $3.5 million cash)

Using the same $9.1/ resource oz, $7.5 million is equivalent to a resource of 824,175oz. Currently the Cue Project has 161.2koz of gold Resources (Indicated and Inferred with 126.9koz at Moyagee JORC 2012 and 34.3koz at Eelya JORC2004). Additionally they also have 38.8kt of Cu in resources and 14.7kt of Cu in reserves (JORC2004) and 495,300 oz of Ag in resources and 150,900oz of Ag in reserves.

Based on what Westgold paid for SLR's Tuckabianna mill and resources, MGV is relatively significantly overvalued. MGV is either expensive or Westgold got a bargain for SLR's remaining Murchison assets. Esh

* not sure if this is all JORC2012

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Nice work E. Those contrary posts are critical in assessing the various companies and their projects.

MGV Price at posting: 7.9¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Ann: Excellent Gold Recoveries from Initial Metallurgial Testwork, page-16

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