George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
I doubt if it would double from the 3.6mcf figure. If it did then it would be higher than their initial "exceeded expectations" figure of 5mcf which they RNS'd. I expect something between 4-5mcf which is actually a great extraction volume that is better than they expected. With the 2nd well comming online after flow stabilisation, we can expect over 6mcf imo.
Even if it stayed at 3.6mcf stable it would be a great result. Remember that the 5mcf they stated in an RNS is a figure that exceeds expectations. ANGS expected around 3-44 mcf in the first place so right on track. Those selling will regret it pretty soon.
Quick calc :
MCAP 100m /2560B shares = 3.8p
MCAP 150m /2560B shares = 5.85p
MCAP 200m /2560B shares = 7.8p
I doubt sp will get to 20p since MCAP would have to be over 500m but I think an MCAP of 200m is achievable if SFB is successful and we get some oil fields flowing too.
3p target by end of week. There are always ups and downs when a re-rate is about to happen and the current sp is nowhere near the actual value if gas production is commercialized. SP should be around 4-5p.
I think SFB will be pumping gas as we speak. The pressure was over 80+ BAR according to last RNS and probably higher once process is optimized. The BoD would be seriously stupid to purchase all of the asset if there was nothing there.
There is no way GL would have bought out all of the SFB asset if he didn;t think it was going to be a success. SP is likely to double once gas production is confirmed. Investors are understandably cautious at the moment but first gas is likely to be within a week. Almost certainly there will be people who will know before we do and sp will move accordingly.
This drop is temporary. Anyone sitting on the sidelines will have to jump in this or next week imo. The sp is not going to go much lower since the aquisition shares were at 1.09p. I'm actually surprised there were sells yesterday on seemingly positive news.
Dilution is the cause obviously but MCAP should now be much higher yet still languishing around 16M. Expecting a doubling or tripling of MCAP within 3-4 weeks as gas is sold and money comes in.
Sp drop will only be temporary. How many people are actually going to start selling en mass on this news? Most will be taking the opportunity to buy right now since the RNS confirms ANGs commitment to SFB. No one in their right mind would acquire 100% of the asset if they were not confident of the end result.
The acquisition of the remainder of SFB means the company is confident that they will make all the money back pretty quickly. We are literally a week away from first gas and a steady stream of income. This is way undervalued at current sp.