The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
T123, fully agree with you.
However, I don't envy the board - going large is the best idea but they still need to make that decision and then what is the funding mix with the gold price moving as rapidly as it has done in the last few months...what percentage debt, gold financed and what percentage dilution.
Of course the option is to go to our billionaires and get it self financed - but I am not sure they would want to take the debt....they would want equity.
Not sure what to make of those trades...if they were all buys or all sells the price would have moved sharply.... but if they we transfers from one account to another why delay the reporting. Anyone got any ideas?
Fully agree re royalties, taxes and as you say add in p/e and of course the other $800 per oz of profit.... I was just trying to demonstrate just how cheap CNR is with the gold price movement we have seen over the last 4 months, we have really got left behind after our fund raising. But I do like the fact we have $10m in the bank. I hope the next fund raising will be to buy the plant.
Just how cheap are we….
I know this is pretty obvious and I know we are not producing yet but I thought I would run the numbers.
Scenario 1
Base case production: 100,000oz per annum
Total number of shares (inc. warrants) 130m
Per $100 dollar increase in the gold price means $10 million (£7.6m) straight through to our bottom line which equates to 5.8p in the share price.
Since April 1st the gold price has risen $400….the equivalent to 23.2p/share…. Our actual share price is just 50p. This alone shows how cheap we are….forget everything else we all know
Scenario 2
Base case production: 100,000oz
Total number of shares (inc. warrants) 130m
AISC: $700
Current gold price: $1970
Net income: $127 million (£97m) per annum – 75p per share
With the gold price up $200 in the last month....even if we are only at 50% production this is equates to an extra $5 million in gross revenue and of course $10 million when we hit full production
Half year results and the associated commentary will be very interesting. Especially with regards to land acquisition. I am guessing with COVID around, sadly many local landowners will be having serious personal cashflow issues - maybe this will mean they will be happier to come to an agreement on terms.
I don't want it to happen but if I was on the Rio board it would be a no brainer to take out Condor, especially (as T123 says) the value of our reserves have gone up by £161 Million pounds THIS WEEK and our market cap is just £54million. They are in country already.