Bought some of these today at $0.135. Market cap of of $13.5 Million at a price of $0.135. Almost 9 million in cash 7 year mine life for 30,000oz starting 4th qtr 2011 (182,000 oz resource) - (note not reserve) (between ballarat and bendigo vic) no debt/hedging total of 235,000 oz resource Further exploration in victoria and WA. top 20 shareholders have over 70% of the stock - thinly traded volume. I cannot seem to find/they have not provided a cash cost to mine which I find a little odd so close to production. They IPO'd earlier this year at $0.25. and I bought some as a bit of a speculative play. Having a very low enterprise value and 2/3 of their market cap being cash, and being close to production. For a back of the envelope calculation i took a cash cost of $1000/oz leaving a profit of around $500/oz for profit of $15 million a year (more than current mrkt cap). For reference, CGT's mine in the same area are anticipating cash costs around the $750 area. Interested in hearing some others thoughts on them. Link to company's most recent presentation. http://www.octagonalresources.com.a...panyPresentation_RIUMelbourneResourcesRoundUp DYODD. Not advice.
Mining equipment has now arrived at their maldon site. Still have 7.5M cash. http://www.asx.com.au/asxpdf/20111109/pdf/422dl009ygknhn.pdf There is also an updated presentation. In hindsight not sure if being close to CGT is a good thing anymore :S
Do they only have an Inferred resource estimate? If so its a big risk - look at CGT That also means they have not done a PFS or any feasability study - you need indicated at least to do a pre-feasability study Your taking a big risk - they better be good and have loads of experienced geologists and metalurgy guys on their board...
more like speculative speculative one, With proven & probable high risk comes inferred high rewards Good Luck and my your Avatar proove to be correct
Having a good run today and over the last week Up to $0.19. Unsure what is currently moving them at the moment though.
Tony Locantro gave them a big lavish ramp on Your Money Your Call. He reminded the audience how he got subscribers onto NST and IGR at a low price. Then he said that Octagonal is a mini "Silverlake Resources". I'll be annoyed if the Maldon mine makes it big time because it was one one of the reasons I bought into Alliance Resources (AGS) which sold it into Octagonal. I dipped out on the Daisy Milano mine too when I was a shareholder of Perilya Resources. The M.D at that time idiotically sold it to Silverlake.
Nice announcement yesterday. 0.21 now. http://www.asx.com.au/asxpdf/20120220/pdf/424g508jcn08jj.pdf tldr: Ore processing agreement with A1 gold mine, covering all costs + 10% of gold produced 50,000tonne per year feed rate. They do not say what grade is expected but link back to 30g/t historically. A little disappointed they did not stipulate an expected grade, still money for jam though.
