My recollection is that the recent capital raising was in part to fund an exploration program. If that is successful, eg find another 500,000 ounce resource this year, then ADU's share price will go up another 20-40 cents/share.
I think that once they have completed the current mine they will find enough additional ounces to ramp up production to 200,000 ounces per annum, with the additional production being unhedged.
I agree that the hedge looks to be at too low a price and too many ounces, but there is some flexibility on how many ounces per year they need to meet so this may help them somewhat.
Anyway, ADU is still significantly undervalued and we should be looking for a much higher price.
loki
ADU Price at posting:
47.6¢ Sentiment: Buy Disclosure: Held
