IMHO this report has been written by a company intent on building a mine - not a company trying to sell shares..... I like that. Numbers all seem very realistic and reporting very responsible.
I like the fact that they have already factored in a 20% contingency into the capex.
They've used cutoff of 0.017 but all the tables show that the lowest cutoff they have is 0.04 so they've likely never go near the 0.017 cutoff meaing better returns than numbers in the report IMHO.
I really like this line too... "the Company is in the process of sourcing, and negotiating for, used mining and milling equipment appropriate for the CHU Project" It seems that they have been working this option for a while - - - which means they've known the project is economical for a while in my books. I've also heard that they've been in discussions with BC hydro... another activity you do only "after" you have an economic resource.
An upgraded 43-101 coming out soon + metallurgy.... I've heard rumors of around 90% recovery which is excellent. We'll see....
What else.... share value range is extraordinary. Using 62mill fully diluted shares and NPV values in report.
Worst case to best case
$116M/62M = $1.87
$514M/62M = $8.29
$1,039/62M=$16.75
$1,438/62M=$23.19
$2,126/62M=$34.29
$2,525/62M=$40.72
I personally don't see the worst case happening ($1.87) at all and throw out the high cases.
They have $7.5 M (bank) + $3 M (tax incentives)... plus some warrant $ still to come in (believe this is $5M to $7M but I can't remember this figure)
Now... think about this... what if they strike an off-take agreement with a Steele Company??!!! No dilution, wipe out the capex (or most of it) and then JV and we are off to the races.... Or even better... they get the used equipment and an off-take agreement!! I don't think these are pipe dreams... we know they are in negotiations for used equipment already and we also know that "numerous" companies have been waiting for this report.
Whenever I've met with Crich I've found him to be a straight forward, no nonsense, realistic, sound business man. These traits are reflected in this report IMHO.
Anyways... do you own DD and ask lots of questions.
GLTA
I'm very pleased with the report...
m.z.
