Do not despair!
Question for those who have read and re-read the report. Towards the very end of the excellent and very comprehensive deep dive (page 8 of 16 of Recommendation), there is this:
"... we take the A$416/oz implied by our valuation of the SLOS, mark it down by 50% to A$208/oz,
and apply this to our 6Moz estimate of caveable ounces for A$1.3bn valuation. Adding net cash and from options,
we deduct Greatland central G&A and finance costs to derive our A$5.0bn / 17p..."
The value they have afforded the gold, appears to my untrained eye, to be the
gold in the ground price and NOT the actual price the gold would fetch after processing (ie: after aisc and other costs). Can someone confirm this for me please?
If this IS correct and it is gold in the ground prices, then the 17p would be valued for their expectations of 9MozAu from the SLOS and 6.2Moz from cave mining. Total 15.2Moz.
[They go onto add that these 'expectations' can be raised by atleast 50% going fwd and this "may", I say "may" tie in with SD's slip of the tongue: 20Moz.....]?
Views on their metrics please?
Thanks
Z