Hey Aussie, firstly, thank you for the detailed post. Very much appreciate the run down and it filled in a lot of gaps in my basic understanding of the company. Just spent about 1 hour going through company reports etc. Very interesting story, especially when you go back to 2010 onwards and the failed T/O, trial mining etc. As you pointed, funding does not seem to be a huge issue, albeit I do have a big issue with the amount of debt they have (even if most of it is held by the directors). Also I very much dislike the ASOF entity, they are a parasite and are IMHO, the main reason for the share price falls. They are likely selling shares drip feed wise (as I have seen them do with other stocks).
Then you have the narrow vein nature of the gold strikes, although I do feel this mitigated by the high grades. The U/G scoping study looked ok, but I can see why they are jumping at the open pits. Capex will be much lower, although I think the AISC will probably rise a little? Say US $700? Total guesswork at this time (obviously still very good).
While I know most of what they have is already on ML, they clearly have had to spend a huge amount of time getting the other permits they want for the newly discovered open pits... that worries me a little just because I have seen so many companies struggle with such issues.
What is the capacity of the plant btw? They seem to never mention it in company announcements or in that recent broker report.
A shame they have to do DD drilling, as the costs are so much higher than RC, or air core for that matter. Are they able to do Air core? As they are talking about oxide for the open pits.
No doubt on an EV/ounce valuation, its damn cheap, but... I really dislike the debt. Any chance they will ever see that US $8m from Shandong?
Just trying to make sure I look at all the negatives before making any purchase. Hopefully once they get more reserve/resources locked in, refurb costs, and a more clear timeline, this can be provided to the market to hammer home what is to come, as while I am getting a feel for their plan, its still feels very loose.
@fbx258 - cheers again. Agree with you, I had not realized how good the plant was or how low the cost should be for refurb. Again, upside does seem to be very clear (ironically, reminds me a little of BLK, I know, not fair on SWJ! ). Hope I can join you both in holding SWJ, just need to rework my holdings.
