Hi Snake. It is a positive announcement, but as @Undaunted...

Hi Snake.
It is a positive announcement, but as @Undaunted mentions, CMM is being a little cagey about the details.
I.e the IRR last year was 31%. Now its 36%. That is an improvement of just 14%, which of course, is nice, but they have increased the reserve by 25%. Plus saved $20m in capex. Plus increased the expected gold price to $1700 AUD, instead of the $1650 used previously. Also, the average yearly production rate has decreased 5000 ounces, to 96.8k, instead of the previous 101.7k.

When I type all that, I feel ever more secure in my view, that while I think CMM is on a per ounce basis cheap, once you throw the debt (as mentioned in the video linked by @Infidel75) and what I assume will be 100% dilution, and lastly the payback of 2.5 years. Meaning that for now, the company will not be debt free until March 2021.

I guess I am still surprised at why RRL chose to sell its holding in CMM. They are smart cookies, they like simply, long life projects, and they themselves produce at low grades. Yet they sold. hmm.

Perhaps the likes of SLR will contemplate a merger.... they have something like $90m in cash. Just doing nothing. They could almost double their production with the acquisition of CMM. Just speculating of course.

I know they will continue exploration, but it will take second place behind development, but I just have to wonder, would it be worth (pushing the initial development back 6 months) spending another 6 full months drilling 100,000 meters (and yes raise, perhaps another $8-10m), to prove up more oxide and materially enhance the early years of the project, or... to push on with production?

I want to buy some CMM, but... for now I cannot, the value proposition to me does not stack up compared to some others I hold. Good luck to holders though! @yatchy - you have been very patient, I hope you get a good return out of this. Management seem grounded and proven, plus I like that they hold so much of the company. Will be interesting to see if they can fund their 17% of the upcoming equity raising - could be as much as $8.5 million! (net to them).