RE: Financing $2M to $2.5MI agree with you, Ninelives - whilst the dilution is horrible at least it means the Company stays viable and has the cash to see it through to profitable production. I am assuming that replacing the Gekko components is not on the agenda for the new funds, so it is obvious they will use the new money to get the Crew deal up and running.
It's a crying shame though that the deal with NIS is not complete as I think that would really kick up the share price. However, maybe now that the news of the restocked ANX treasury will mean that NIS appreciate the position of strength that Lew now negotiates from.
The acceleration rights hint at the Company's desire to repurchase shares for cancellation, so hopefully Lew will buy back some of the 50m additional shares that he has now issued - the total number of fully diluted shares in issue is now in excess of 110m.
Whilst I am not totally on top of all the numbers, I reckon that ANX should be able to make a profit of $10 - $12m - or 10c per share once the capital cost of the mine is dealt with. Not sure what multiple to use, but if we say 20x is fair we could be looking at a fair value price of $2 by the end of the year. If they can really ramp up production at both PC and NP and get profits north of $20m or 20c/share we could see $4 - all of which is very achievable by the end of calendar 2009.
Can anyone run the numbers.........??????
Assumptions: 500tpd at PC; 800 tpd at NP; 70/30 in ANX favour as any other arrangement will only last until PC is complete and that wont take long once some cash is flowing through the accounts; gold at $850 and production costs at C$400.
I definately think we can look forward to fillet on the bbq - maybe champagne in the glasses too!