PEPAS - a company maker18 Jul 2025 18:33
We thought it was going to be an uneventful few months just infill drilling PEPAS to about a 300koz, but this week's RNS has really put the cat amongst the pigeons and ignited the next move up. IMHO, PEPAS is going to be the company maker by itself, irrespective of what the other projects deliver. We are starting to de-risk PEPAS in terms of it justifying a re-rate of the share price. For example, we now know the following (or have a very high degree of confidence) that:
1) The MRE is going to be larger than expected. See further PEP45.
2) There are satellite areas of mineralisation around the core PEPAS deposit. See further PEP40 and 41.
3) There is then PEPAS NORTH - to be revisited with more targetted drilling.
4) Last, but potentially the biggest, is the primary control main feeder zone, which we are now seemingly vectoring in on and believe it is likely to be along the SW margin. See further PEP43-45.
I don't know if the 1.4million ounces exploration target mentioned by the analysts incorporates all of the above, but that target represents $4.5 billion of gold in the ground. Now on this week's results, who would argue that the MRE of the PEPAS core itself won't deliver at least 30-40% of this target? And if it does, then look at the upside that has potentially been opened up by the satellites, by a much larger PEPAS North, and a feeder source that might dwarf them all.
IMHO - we are, and should be, heading for a mcap here in the hundreds of millions. Whether we need the MRE to underpin it, or the market will take us there on anticipation of it being a virtual certainty, remains to be seen.
So PEPAS IS the company maker in itself now, with (potentially tremendous) bonus upside to come from El P, El C and Apta. Enjoy the ride, I certainly will. All imo and GLA