RE:In one of my posts, I asked if EV going from .085 to $5IMO, the sentiment hasn't changed with regards to the price going from $.085 to $5.00 from the time the binding Option Agreement is signed off, until the end of Part 2 when the Mining License is issued to Balkan Gold about mid 2022.
These are the facts from the PEA or Economics for Piskanja which are conservative and now out dated, too low-
- Post tax NPV (10%) of US$428M with an IRR(Internal Rate of Return) of 64%.
- Forecast annual revenue of US$97M.
- Project payback within 15 months of startup.
- Mine Life 21 years.
- Gross Project Revenue of $2.04B.
- Net Operating Margin of 68.7%.
- CAPEX(Capital Expenditure) US$84.6M.
- All in Cost/t (CAPEX, OPEX, AISC,Tax, Royalty) US$165.75M.
- Good potential for resource expansion.
The $5 value was calculated from the original PEA numbers from SRK's Consulting Report.
These numbers erred on the side of caution, ie.were conservative and now are outdated as additional drilling programs have occurred, adding borate tonnage numbers to the previous report, share total is lower after the 7:1 rollback, and the CAPEX is lower than originally projected to mention a few.
Essentially many things have changed in the PEA Report, so a revised PEA Report shall be forthcoming, so I'm told, along with some other technical reports.
IMO, the revised reports would be released before Part 2 is completed, and the revised reports will be better than the first PEA report. Timing of Economics is essential during buyouts.
If the objective for both Companies involved at Piskanja is for buyouts, you better have the
Economics current so both Companies maximize the selling price for all stake holders involved. Stay tuned........
To answer your 2nd question, if both Companies decide to announce that they have completed their dd and are moving forward it's a done deal, as the article implied that I posted yesterday. Erin is the perfect fit for Temas with what their objectives are moving forward.
IMO, Temas will now have 4 prestige properties which will fetch them several $B in a massive buyout.
I would expect to here news one way or the other, this week.
If Temas is still committed, the price on a speculative run will reach $0.75-$1.00 range through to the announcement of the partnership in mid April.
I might add Erin is so undervalued the market has alot of caching up to get the price to where it should be based on the PEA numbers.
Moving forward, there will be no share price increase delays, as share pricing will be built in automatically, to all the forward progress of accomplishments ie. the announced partnership,
Part 1 completion and approval, updated PEA/technical reports, Part 2 &3 completion & rubber stamped, receving the mining license, approval to receive the Pobrdje deposit, building the mine, drilling the Jarandol basin - more borates tonnage = more revenue, and going into production at Piskanja. All of these items that are all positive will increase the share price substantially.
As you can see, there are endless positive accomplishments that will occur from now until Companies go into production at Piskanja, and that's why the PEA economics calculated the share price at $11/share going into production. You may think the price is extreme going into production, however the accomplishments will drive the share price to that level.
FYI, there has not been a better borates deposit found on the face of the globe anywhere, better than Piskanja in the last 25 years. If you should find one in your research, by all means let me know.
IMO, the train is about to leave the station at mach speed, strap yourself in, and enjoy the
G Force ride!
Cheers, and have a great day.
(bb-99)