RE: New price targets?22 Apr 2023 12:55
Paul, I think your figures are conservative.
Two reasons, a 20 million dollar drilling program is huge, neither Hainan nor Bernard an experienced commercially savvy geologist would embark on the drilling without being confident of a result. Bernard would simply want the cash for shareholders.
I am expecting a massive return on their drilling program.
On an 'if you sold today' type scenario I am expecting that to take us well over the asset value per share you list.
But once into production it is a total different ball game, massive income is coming in and the sell today value, a discounted value commonly called an NPV, is replaced with actual value which is much higher.
It is also then a question of how Bernard rewards investors with a share of that income, some think a dividend, common in the main indices, I do not, I think he will transact in our own shares and reduce the share numbers increasing the value of ours with a percentage of the income.
Adding value and reducing shares at once can create high share prices.