question if i may to copperroad and HC members if the NST share...

First 15 Last

Share
Profile

Follow
bobby.

82 Posts.

5

18/06/18

04:42

Post #: 33769831
Share

Originally posted by copperroad ↑

Gold is now trading at A$1744 for those who watch. If EAR comes in around the A$1200 all in costs, then we can do some back of the envelope figures.

I have rounded down the margins to be a little more conservative. (reduced this by $44 per per ounce)This is a rough idea of the potential imo. One also has to allow for debt repayments and we don't really know that number.

80,000 oz x A$500 margins = A$40M pa

100,000 oz x A$500 = A$50m pa

I am sure the company has a lot of losses to use up and the debt can easily be manged.
There is currently 488m shares on issue and lets allow for a placement of another 70m shares for the hell of it. This means EAR will have about 550m shares on issue. This basically means the company can earn something like 7c plus per share and it trades at 26c. As you can appreciate, these are basic guess numbers. You can see why it looks cheap to its peers on these rough numbers with a 10 year mine life. Please dyor on your own numbers or check out Euroz below.
I don't think NST will buy this yet, but maybe they should before any debt or raising and use their own balance sheet for the refurb.
The numbers will pay for the acquisition quick smart, they get the plant for miles of extra capacity and they get all the exploration upside. This is like buying a house and finding out you get the one next door for free.Happy to see some numbers from you guys.

Euroz note does not include the recent 233,000 oz just added.

Part of the Euroz note-
Investment Case
We continue to like EAR as a low capex, emerging producer with excellent exploration upside. The DFS should demonstrate a robust development with reserve of ~ 850koz and annual production of >90koz ( Yrs 1-4 @ 105koz) at AISC of ~ $1,200/oz. We rate the exploration potential highly and expect further high margin ounces will be added over time. The recent Ramone discovery by NST just to the north of EAR’s tenement boundary has opened a new area of interest. Our valuation remains at $0.45/sh which is risk adj by 80%. Corporate action can’t be ruled out NST holding a 19.2% interest and its share price close to record highs.

Expand

question if i may

to copperroad and HC members

if the NST share price started to go south

would that make them more keen to go early

with any bid they might make ?

not advice or suggestion just thinking out loud

cheers bobby

EAR Price at posting: 25.0¢ Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper Highlights: Your most watched stocks for Week 47, 2024

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 16 more messages in this thread...

First 15 Last

Add EAR (ASX) to my watchlist

question if i may to copperroad and HC members if the NST share...

Top Stories

Scientific conference spotlights PYC's work on blindness disease treatment

Sales growth pushes Lovisa's fortunes (and shares) upwards

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper Highlights: Your most watched stocks for Week 47, 2024

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects