From the other board22 Jun 2020 10:05
Updated investment casse.
The companys current market cap is £10.50m (4.2pence per share). Allowing for cash and cash equivalents of £5.6m (now including the £2.1m gold loan confirmed in todays announcements means that the market is valuing the companys flagship asset, the Akrokeri-Homase Gold Project (AKHGP), at £4.9m. £4.9m, against a current post-tax NPV of £23.3m (at US$1,750/oz gold price following todays strong rally, is, quite frankly, a complete nonsense. Remember, the £4.9m valuation assigns ZERO value to the assets significant post code; AKHGP lies 7 miles along strike from AngloGold Ashant Obuasi Mine which is targeting 350,000 ounces of gold production in 2020. The £4.9m valuation assigns ZERO value to Paracale Gold and BCs presence on the BOD. PG and BCM are globally renowned, hardened, and highly respected gold investors who collectively own 48.2% of the company. Finally, the £4.9m valuation assigns ZERO value to the fast approaching inflection point – gold production. Ghana's EPA is due to issue the Environmental Permit imminently. The issuance of the EP will then trigger the immediate commencement of mining operations: Stage one involves mining the ore. This projected to commence in July 2020. • Stage two involves crushing the ore and heaping it on a leach pad. This projected to commence in July 2020. Stage three involves the irrigation of the leach pad with a leach solution to begin the extraction of the target mineral. This process, called the 'leach cycle', typically takes 4 weeks. Stage four involves the ultimate recovery of the target mineral gold. This projected to commence in the backend of August/beginning of September 2020. Thus, the shares, which currently represent exceptional value, should be trading at 12pence per share (fair value) ahead of any gold production news.
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