Anyone got any feeling as to when we can start the bulk sampling? Like are we still waiting on some consent or govt approval?
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Anyone got any feeling as to when we can start the bulk sampling? Like are we still waiting on some consent or govt approval?
So NTL has an MCAP of about $6m. Fair enough, it's not doing all that much at this very second.
But seeing as they are soon to begin their bulk sampling programme I did some sums on a scrap piece of paper I have.
A = $1726 (Price of gold in NZD)
B = 600 (Bulk sampling ore ton per month)
C = 1.5 (Ounces of gold per ton. Alternatively, D = up to 32 in some of the crazy-rich areas)
A*B*C*12months = $18,640,800 (A*B*D*12months = $397,670,400 :D)
In the loosest sense let's give NTL a very reasonable MCAP of 4 times revenue = $74,563,200...
Viola, 10 cents a share :D
Haven't even added the silver (3:1 ratio with gold if I remember correctly) or the potential JV at Rahu yet... Or the holding in Broken Hill on the ASX...
Now that the judicial review has been dropped the bulk sampling process is getting closer to beginning. How long until Worksafe sign it off? :D
Examples please Snappo? (with cost per ounce would be ideal too, as you'll see below :D)
So NTL is profitable at $1000USD per ounce.
That leaves $200USD per ounce profit.
$200/.69=$289.85
$289.85*600*1.5*12=$3,130,380
$3,130,380*25 (multiple of cash flow, as per below) = $78,259,500
$78,259,500/[731,421,325, number of shares] = 10 cents a share
What do you say to Kenneth J. Gerbino in his article 12 Guidelines for Buying Gold Mining Stocks:
I jus simplified the equation for you... 4x revenue, all day long snappy.Quote:
A key stat is cash flow per share if the company is already a producer. Large gold mining companies can sell for 15-20 times cash flow in a good gold market. Mid-tier and smaller producers can sell for 25-35 times current cash flow because of expected cash flow increases, from new mines coming on stream. In this case the market is anticipating the future. Beware high cost producers selling at high multiples of cash flow, as they will get hit very hard if gold has a set back.
Yes snapiti .5 x revenue is more like it so just divide the 10cents a share by 8 and you get a SP of 1.25 which sounds about right for an immediate target. 2 cents a share should be achievable once you consider the other assets that robbo24 has pointed out.
The thing I want to get clear is this offer to buy more shares at .7cents a given that this chinese investor will buy 1.25 million at .8 cents,or is this just TALK?
I've already got my SPP application form filled out :D https://www.nzx.com/files/attachments/214665.pdf
The offer booklet is a good read, lots of wonderful pictures of trucks and things.
It's not talk, it closes in a week...
And the agreement with the Chinese investor at 0.8c is binding subject to documentation and ASX/NZX requirements... Nothing too over the top there: https://www.nzx.com/files/attachments/214653.pdf
[QUOTE=snapiti;577506]https://www2.nzx.com/companies/NTL/announcements/235336
Phase 1 development of Talisman mine to deliver cash surplus of NZ$23.4 million
Robust C1 cash cost of US$588/oz and C3 Cash cost of US$1075/oz – well below current prices