Going by the volume of late, some serious accumulation is going on. With AISC (estimated) around $1,100 and the POG around $1,600 (in AUD terms), the $500 margin per oz x approx. 500,000 ounces (assumed reserve figure) = $250m over the 5-year LOM. NB: The capex to refurb the plant is included in the above AISC figure. This is for starters.
Price to FCF = 100,000,000/250,000,000
= EAR is trading at 0.4 times FCF.
Of course, these are rough estimates, however, if you use this metric, it would be fair to assume that the EAR SP still has a long way to go (rise) and that institutional interest is just getting started. Good times ahead.
EAR Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
