dickbos schreef op 10 juni 2015 02:17:
Normally this is a good time to buy, but I don't like the base metal aspect of this project. It has significant copper (1.2 billion lbs) and zinc (2.5 billion lbs). It also has gold and silver, making the ore very economic. They released a feasibility study recently and plan to produce in two stages. Stage 1 will begin production in 2016 with only a $50 million capex. Then stage 2 will reach full production in 2018 or 2019 with a $350 million capex. They will produce about 65 million lbs of copper, 184 million lbs of zinc, 42,000 oz of gold, and 1 million oz of silver annually.
They are expecting revenue to be around $250 million per year (their 60% share). It will be around that amount if prices remain the same for copper ($3 per lb) and zinc (.80 cents per lb). I would expect cash flow to be around $84 million per year at higher gold prices, making this a possible 5 bagger from the current $57 million FD market cap.
"Over time, their production should increase with exploration success, but that is not guaranteed. I think you have treat this as a high speculation stock because of the base metals exposure and the location (East Africa: Eritrea). They do have large land holdings of 200,000 acres and have significant exploration potential. Cash flow from their first mine could lead to a growing company." (goldsilverdata.com)
Eritrea? Binnenkort IS gebied .. Nee dank u. Ik hou het bij McEwen Mining o.a