Ann: Mining Lease Approved and Mining Commenced at Macy Project, page-112

My comment from July last year

"And another thing to consider is that with 581,425,131 shares on issue and trading at 3.4cents the MC is about $19.7 million (EV ~$16.5 million) which doesn’t leave much fat (other than blue sky mining) against the scoping study value of $20.3 million (EBITDA base case for 60% share). Remember this is before tax.

So maybe level heads are better prevailing IMO to see if the company can deliver what is promised and what additional value the company might be able to deliver through exploration with the proceeds of the mining before running the share price up to 7cents again, based on HC hype alone. You don’t want to be handing the escrow guys a gift on a plate IMO, make them work for their supper and their super. Esh"

Sept quarterly shows 584,925,131 SOI, cash of $1.365 million and drawn debt of $3.462 million.

Based on current share price of 1.8 cents and the above information I get a MC = $10.53 million, EV =$12.6 million.

Since Sept they have expanded their credit facility to US$5 million (=A$7.02 million) and taken on a $1.1 million liability under a CN.

Assume further drawdown on debt of ~$4.7 million in Dec 2018 quarter and sales of $0.5 million (complete guess...judging by other posts it could be less) then we have EV = $16.8 million against scoping study value of $20.3 million (EBITA base case for 60% share).

Value about the same as when I last looked at the numbers but share price 47% down.

I noticed from the quarterly they had (predictably) suffered some mining dilution due to artisanal mining voids.

I'll keep it on the watch list to see what the IP targets look like. Might be worth a punt if they can get the drills spinning on some exploration. Operations wise it still looks like a bleeder so wait for the blood to stop running. Esh