Thoughts30 Aug 2017 20:50
GRL 600k Oz resource. Brown field site with visuals of Anglo Ashanti mine behind them. £1.9m mcap. New COO appointed today. COO owns 10% of Paracale who own 28% of GRL.
COO is a mine engineer operations guy. He's been appointed to oversee the mine set up. Paracale fund mine development. They aren't going to go over 30% holding so the funding to build a very simple mine (open pit in place, excavators, trummell etc) will likely come from debt/smelter royalty via Paracale.
So in a very conservative estimate of say 25000oz per annum mine (over 20 years so will be higher) you get at 700$ costs (very high) you get at $1300 Oz gold $15m gross profit minus plc costs.
Market cap when producing c£50m if you take a very low EPs ratio.
Current cap £1.8m.
Should be mining by 2018.
Other projects will be funded by cash flow