Post by
horsewithnoname on Jun 06, 2024 1:37am
next steps
I assume from Giulio´s comments it is clear that he sees that drilling as a nice to have but not as the key driver for the future of the company. The proposed mine is already very big and additional resources will only add to the life of mine but not impact on the immediate economics. He was also clear - Alta is not going to develop this mine, the project at some stage will be sold off to a major, very likely it will be Fortescue.
He has now the PEA which sets the maximum range - he mentioned 20% or about 450 million USD, which would be equivalent to 7 CAD per share, if I am not mistaken. The additional resources will not add to the PEA - so there is marginal value in it, however, it comes with the price of further dilution. What is however key is to show he has community support and therefore obtaining the drill permit in the comming months will be the key puzzle for Alta to go ahead and to take off any breaks at the share price and any take over disucssions. So far the communication has been that things worked well at the community meeting the that the administration supports the current project.
I believe that with the permit at hand the share price will appreciate very quickly to levels about 40-50% below expected take out prices - which would be about 3 dollars a share and than it will depend on Guilios skills and the specific market situation on how for he can push it form there. So let´s see when the permit will be coming in. GLTA
Comment by
ForesstGump on Jun 06, 2024 7:55am
We'll see what happens in Q3. Has to get to 2.50 - 3.00 /sh this year.