What’s happening!, page-42

Follow the Fundamentals First.

For:
Comprehensive DFS from highly credible engineers and consultants
Permitted with a team that builds/runs mines.
Gold price now A$1830 vs DFS which assumed A$1650.  
Thats an extra A$180m ro bottom line.
hedging some would lock that in.
AFTER TAX Free Cash Flow of A$420m now up 40% to say A600M on DFS prognosis.
Similarly, A$200m( 8% disc) AFTER TAX NPV would be up 40% to A$280m.
Reserves re-optimised at this gold price would be larger.
Tangible saleable asset with capital payback now under 2 years.

Against:
Sick short term market sentiment for explorers/developers
Resources Fund Shareholders currently have their own portfolio crises - everything is down so their performance looks sick.
Mkt Cap of ~a$30m trying to leverage fund an A$200m build - too dilutive to existing holders to build at this point.


With a projected 8% disc. NPV of est. A$280m and a market cap of A$30m there is tangible and multiple value here by waiting-out the current investor crisis IMO.  At worst it gets sold for several times its current mkt cap.

Being sucked into the logic that sellers must know something different is a mistake IMO.  They would have known the DFS result at PFS stage.  They were pretty similar.  And they weren't sellers a year ago!  

The sellers are Resources Funds and are merely trying to fix their own portfolio numbers....its nothing company specific that I can see.