Extract from a previous writeup19 Oct 2020 21:54
At Elizabeth Hill there’s already a track record of historic production, with grades running at almost 2,200 grams per tonne. Given that silver can be economic at as low as 300 grams per tonne in certain circumstances, there’s clearly a huge amount of room for manoeuvre and margin here.
What’s more, back-of-the-envelope calculations value the silver in the ground at the new acquisition at around US$100mln, and although such calculations don’t have the value of a full discounted model behind them, it’s not hard to see why the market has been getting behind the company and has now pushed the valuation up towards £20mln.
What’s more, there’s huge exploration upside on the new ground to be had as well, in the copper and zinc on at least two other areas of known mineralisation.
All of which would be enough to build a company around on its own. But Alien isn’t just about Elizabeth Hill. It’s also got a sizeable silver portfolio in Mexico, on which much progress has been made of late, as well as the Han**** and Brockman iron ore projects, which are also in Australia.