Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
better late than never. also never worth jumping in until you are sure.
The growth still hasn't been factored into the market cap and I believe expansion will be coming soonish. plenty to look forward to.
Even if we use the December figure for production of 872 ozs without any improvements which we know are coming.
872 x 12 = 10,464ozs per year
10,464 x $1800 = $18.8m dollars
£14m per year in revenue vs a £17mc
Operating costs also under $1000 per ozs and will only decrease when further production comes on line
Do the maths people!!!!
Buy as much as you can and hold for 2 years. Simple
It would be crazy if we didn't. that would mean a decline of production from sept.
Other factors are in play though for a MC comparison. Think they produce silver too plus many other things like costs etc.
would like to see some forward looking statements too
I think everyone needs to appreciate (really for the new investors) that even without the massive plans to increase production to 1000 ounces a month then to 2000 we are already undervalued. It is already a sound investment case.
The current market cap is £18m.
If you looks at the September figures produced it was 569 ounces. Then do a basic calculation by 12 months you get:
12 x 569 = 6,828 ounces
Revenue = 6,828 x $1800 = $12,290,000 or £9m in revenue.
So thats £9m in earnings, own a gold producing plant, owns 2 drills, over 1.65m ozs of JORC resources.
They are already undervalued without production improvements / heap leach / open pit, resource updates!!!
Even just getting to 1000 ounces a month means earnings of £15.4m a year.
It really is the biggest no brainer I have seen on a value basis only.
In fact is it very annoying the IG are closing only on caracal (they call it papillon). Such an easy leverage bet with a really low share price the deposit is minimal. Now that really would be easy big money with little capital outlay.
Anyone else know any others that are taking bets on them?
I have actually never seen a share where the risk is reward is so strong. Even at 40m mcap I would be thinking the same. I loaded up again today.
I will live or die by this share and happy to state it. The production update is interesting and gives a glimpse of progress but will not be crucial going forward unless it is awful (which I think we can tell by today) it wont be. Even 800 - 900 per month would be great progress month on month.
I keep on looking at my portfolio with excellent shares like ATM, BEN, ZPHR and still feel caracal will easily rise more than them. It is taking all my willpower not to sell the rest and go for it. Only investing 101 is stopping me from doing this.
The arguement I am having is if I see 100% gain in BEN for instance then if I am utterly convinced that caracal will go up 200% min then I am actually not using my investment pot correctly and losing money I could have gained.
It's a tough choice.
Yes its obvious we have a seller due to the lack of movement after 2 days of buys. Will always happen. Nice to see the share price hold up when this happens.
People have always got different goals and thoughts and could well have made a good quick profit from 1p to 1.3p.
This is a long term hold for me. You can tell they have very big plans.