1. There are only 38.23 million shares in issue. At £1.06p/share the M'Cap is just £38 million and is significantly discounted to the current NPV of £5.50p per share as per the PEA (Edison have valued CNR at £6.14p per share). Mark Child owns more than 9% of the company so has plenty of 'skin in the game' and Regent Pacific, an investment vehicle for renowned entrepreneurs Jim Mellon and Stephen Dattels have bought 10% of the company at £1.60p/share after conducting significant due diligence - a significant vote of confidence in the project.
2. CNR has 2.33 million oz of high grade gold in one location at 3.9g/t, which is three times the industry average (1.08m oz of Indicated) and is one of very few resources of that size and grade in the world. The La India District has been increased in size by 44% to an impressive 280 km2 of highly prospective land (as shown by the geophysics results and the ongoing trenching programme).
3. Metallurgical tests have produced an excellent recovery rate of between 92 to 98%. That compares very favourably with other low cost producers such as MML 89% and AR. 90%.
4. CNR already has the biggest resource in mining friendly Nicaragua, despite the presence of B2Gold, which is well established in the country and is also highly profitable. CNR's La India district holds at least 5 million ounces, but probably a lot more and the broker Ocean Equities has suggested that although CNR already has a 2.4 million oz resource, the company has just been 'chiselling at the tip of the (gold) iceberg at La India'.
5. Within two months CNR expects to publish its PFS which will see a switch of CNR’s Indicated resource to reserves. With the completion of the various studies which make up the PFS the report will also substantially derisk the project making it significantly more attractive to potential buyers/partners. Recent takeovers (post PFS) suggest reserves could be valued at well over $100/oz and given that CNR's Nicaraguan resource is currently valued at a lowly $28/oz the potential upside over the next few months is clear to see.
6. Recent Numis comment: ‘One of the most impressive aspects of the project is the excellent infrastructure - tarred roads and power lines run through the La India concession and there's a hydro dam nearby. Walking the ground we got to see first-hand the sheer size of the epithermal vein system in the district, most of which remains untested. The potential for extensions, hidden deposits and new vein sets in an under-explored high grade system, coupled with the excellent infrastructure is extremely compelling. Add to that a supportive pro-mining government, and our parting thought was that this is a project full of tick marks not red flags'.
It has been good watching trades picking up here ahead of results and PFS. It is also good to see many of the old timers still here;). Good luck everyone. Btw, that post last night was as a result of me stumbling across my old aim addict app...it still worked!
Vid & jibbo ,it would be GR8 if you guys could post your updated Fundamental Analysis & More Gold posts each morning for any potential newbies looking in ,this will give them a head start with their own research. i no i could copy & paste BUT wont as would consider this as taking a liberty. keep up the posts guys. any sniff of a imminent incoming RNS & we will really motor, untill then these gradual daily increases will do us just fine.
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