GTM giants reef mining limited

some decent volumes going thru

  1. 7,409 Posts.

    Did some rudimentary sums on GTM. I calculate from their Chariot mine that based on the hedged 75% of production (starting soon), they should be raking in $21mill after expense, before-tax profit per year. This is currently a 4 year mine, loan is $15mill or so, so should be profitable after first year. Further aggressive drilling should expand the resource.

    They also have a number of other promising projects going, and with a cash-flow (and options exercises), should be able fund these without further placement or debt.

    Currently has a market-cap of $64mill (and options which should get exercised in June next year), so would think quite a bit of upside left.

    Also thinking without having codes, that CBA are still selling as the sell orders are consistently large, but these appear to be getting soaked up quite easily.

    Personally would expect a push in price as production becoems a reality, and CBA finishes selling.

    Any comments?


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