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Hmm, yes an interesting development. Let's assume they issue 50m @ $1.40ish a share gives them another $70m. Basically that builds it for them doesn't it? WHat was cap cost for Ayanfuri - US$147.9m incl contingency.

So that would just about get them there and would mean that ALL revenue from Ayanfuri comes back to us shareholders. Sounds like a pretty good deal to me rather than paying fees and interest on a loan that was only going to be paid back in a year or two anyway?

On their FS figures - 230koz in year 1 @ US $392/oz

Margin @ $1000/oz = $600 x 230k = US$138m net year 1.

On the basis of current capital plus above assumed 50m = 350m shares gives
about 40c a share. On a conservative PE for junior producer with lots of upside, say 10, would imply $4 per share - same as BGF target.

Only problem with these cap raisings when the SP is moving the way it is is that the issue price is most likely going to be well below where we are currently at which may hold the SP back a bit short term.

<blockquote data-quote="jonojpsg" data-source="post: 502043" data-attributes="member: 9550">Hmm, yes an interesting development.&nbsp; Let&#039;s assume they issue 50m @ $1.40ish a share gives them another $70m.&nbsp; Basically that builds it for them doesn&#039;t it?&nbsp; WHat was cap cost for Ayanfuri - US$147.9m incl contingency.&nbsp; So that would just about get them there and would mean that ALL revenue from Ayanfuri comes back to us shareholders.&nbsp; Sounds like a pretty good deal to me rather than paying fees and interest on a loan that was only going to be paid back in a year or two anyway?On their FS figures - 230koz in year 1 @ US $392/oz Margin @ $1000/oz = $600 x 230k = US$138m net year 1.On the basis of current capital plus above assumed 50m = 350m shares givesabout 40c a share.&nbsp; On a conservative PE for junior producer with lots of upside, say 10, would imply $4 per share - same as BGF target.Only problem with these cap raisings when the SP is moving the way it is is that the issue price is most likely going to be well below where we are currently at which may hold the SP back a bit short term.</blockquote>

[QUOTE="jonojpsg, post: 502043, member: 9550"] Hmm, yes an interesting development. Let's assume they issue 50m @ $1.40ish a share gives them another $70m. Basically that builds it for them doesn't it? WHat was cap cost for Ayanfuri - US$147.9m incl contingency. So that would just about get them there and would mean that ALL revenue from Ayanfuri comes back to us shareholders. Sounds like a pretty good deal to me rather than paying fees and interest on a loan that was only going to be paid back in a year or two anyway? On their FS figures - 230koz in year 1 @ US $392/oz Margin @ $1000/oz = $600 x 230k = US$138m net year 1. On the basis of current capital plus above assumed 50m = 350m shares gives about 40c a share. On a conservative PE for junior producer with lots of upside, say 10, would imply $4 per share - same as BGF target. Only problem with these cap raisings when the SP is moving the way it is is that the issue price is most likely going to be well below where we are currently at which may hold the SP back a bit short term. [/QUOTE]

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