Post release of that JORC, this stock is so undervalued it isn't funny.
I've been reading through a few broker reports on gold explorers, and the trend seems to be that most stocks have an enterprise value of, on average, $130/ounce for a grade similar to that at Anthill.
Fully diluted, MKO has ~80M shares on issue, of which, 20M are through the assumed exercise of the 20c options, which yield a $4M cash value. MKO also has $3.5M cash, giving the stock a net cash value of $7.5M.
The Anthill JORC resource of 160koz is worth $21M according to the above broker model. So Anthill and the net cash balance alone is worth $28.5M in EV, or 36cents per share.
Then we have the Goongarrie JORC, which could really be anywhere from 50koz to 80koz by my estimates, adding a peer assessed value of about $6M-$8M, or about 7-10 cents per share, on top of the 36cent per share evaluation above.
Note: quite basic and simplistic in nature are these calculations. In reality, the market doesn't think this exact same way, but on a peer comparison alone, MKO is greatly undervalued. There are, ofcourse, some quite extraordinary stocks (eg. PXG) who trade nowhere near an enterprise value of $130/ounce, and this should be duly noted.
MKO Price at posting:
18.5¢ Sentiment: None Disclosure: Held
