GREY:CLGRF - Post by User
Post by
oddykogon Jul 15, 2005 1:42pm
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Post# 9284073
CRJ at $0.96
CRJ at $0.96Claude at 96 cents is valued at not much over $60 million if you net out the debt and the cash. Seems awfully low to me, particularly as the news flow will now turn positive. Book value will be around $50 million at mid-year and they are projecting sales of 36 000 ounces or about 12 000 per quarter for the last 9 months of the year, which should make them profitable for 2005. What is more, the new mill expansion will be coming on stream in a few months and the bulk samples will be extracted and processed from Santoy Lake and Porky. Next year should see the first of the ore from those two new mines boosting production. That is quite without Madsen, where a decision is due some time between now and the end of next year.
In particular, I am hoping that (at last) they will be able to generate all the capital they need out of profits and depreciation. The market's reaction to the recent secondary issue was clear enough: We are sick to death of continual dilution. At $0.96 you are buying in at a price under the price paid by the new shareholders and there is the hope that for a while no new capital will be needed.