Interesting start to 2019
Some low volume selling and buying, I think we are in a bit of zombie state where there is no significant downside right now
Why 2019 could a year to come
- Mining Right and expansion to 20,000 ounces per annum
- Gold making record highs in AUD (Rand is also getting up there)
- Smaller Mining Permits to expand operation from the current 1000 ounces per annum to 4000 ounces per annum
- New toll operators on current operation to improve recoveries
- If mining right occurs this resource should be worth at minimum 10-15 Dollars per ounce in terms of EV value (30-50 million based on 3.67 million resource)
Risks
- South africa drags out permitting process and another CR is required by june (no positive cashflow from mining permits before mining right granted)
- Gold Capitulates to below 1100 USD per ounce (softened by strong dollar at the moment)
At current 8 million MC I see significant value and upside to a potential 50 million MC in 2019
Lets hope management keep kicking goals and keep us updated!
