RE:BUY coverage Couloir Capital Ltd Evaluating a fair value is very difficult due to the nature of the deposit. On the MC / NPV10 stage1 basis with 0.30-0.35, CGK is currently rated 'fair' for me. Parameters POG 1700 and r = 10% are OK. This only includes the starter pit (20% of the resources) and no upside (higher grade etc). In contrast, of course, is the far higher risk with regard to the large-scale implementation of the alkine heap leach approach.
On an Insitu Resources / EV basis, CGK is very cheap due to the refractory ore. However, this can only be used to a very limited extent as an assessment approach. The 15m oz in the sediment have to be drilled out more precisely and are metallurgically more difficult. The 5m intrusive are dismantled first.
All in all, the risk opportunity ratio is still very good for me, but only macular until the first recovery studies. After successfully prove the Phantasie for a big scale operation will drive shareprice higher.
I would describe the 'fair value' as a 12-18m price target.
peter