https://www.asx.com.au/asxpdf/201806...7tt0ykq4cq.pdf
https://www.asx.com.au/asxpdf/201806...7wyn66hkx8.pdf
amended doc....
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I agree. The current market capitilisation is about the NPV of the PFS. Because of that, I sold out today. I recognise that there are prospects for further resource definitions but with the limited mining approval limits, realisation of those is very much impacted. With the current Government in place, I am very dubious that these limits can be overcome.
The onsite underground processing of the ore changes things substantially and for me was a game changer. As I have said before this is a highly speculative investment but underground processing has in my opinion decreased the chance of outside interference and increased the chance of this becoming a profitable mine for the benefit of the staff, local community and long suffering shareholders.
The Greenness of this Mine, now evident, has not yet been reflected in the SP, but it will, as potential for political and greenies interference is now gone.
That was something holding back the SP, so I expect it, with all the work being done to head back in the interim to its previous level of 2.8 to 3.1c.
IMO the main reason the mcap is very low for this relative to the available resource is lack of extraction, processing and sale. That is where the current main risk lies. Until that occurs this remains a speculative stock.
Highly speculative...but worth a punt as the gold is there. Just remains to be seen whether they can bring it out in commercial quantities in a reasonable time frame. I will hold for 5 years.
Scoping study on Deeps has been released
http://nzx-prod-s7fsd7f98s.s3-websit...006/281815.pdf
Results aren't nearly as stunning as I previously imagined, but that's still a fair amount of gold that can be extracted.
But what is really concerning is the next part:Quote:
This Study has found that the orebody is likely capable of supporting a medium scale mine, producing on average 18,000 gold equivalent ounces a year over a nine year life from 50,000 tonnes of ore a year. The project will require a $25m investment in equipment and installed infrastructure and is estimated to yield a Net Present Value, at a 12% discount rate, of between $11m and $89m with an expected return of $49m. Cost estimates are inclusive of a 25% contingency included to reflect the confidence level of the estimate.
How many times do they have to dip into our pockets :t_down:Quote:
To achieve the range of outcomes indicated in the Scoping Study, funding of in the order of $19 million will likely be required. Investors should note that there is no certainty that NTL will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of NTL’s existing shares.
Why can't they just have an incremental plan, using profits from earlier mining stages to fund the next.