Some of Australia’s top mine developers say their class is showing extreme value as investors flip from risk on to risk off in the wake of the Iran War.

But as projects come to fruition and cash begins to fill up the coffers, they stand to benefit from a re-rate as the market catches on.

Who’s on the development curve?

Chalice is hardly an orphan, and most ASX developers are now trading at big discounts to the net asset value of their projects.

A number of gold developers are among that group, despite the fact most have projects drawn up at gold prices far below today’s US$4050/oz levels.

Capped at $234m, Astral Resources (ASX:AAR) is 50% off this year. But it’s continued to progress its Mandilla project on Kalgoorlie’s doorstep.

The mineral resource is up to 1.74Moz at Mandilla, and cash flow is due to come early in mid-2027 via the development of its smaller Feysville project via a proposed JV with private turnkey mining contractor Mineral Mining Services.

A DFS is ongoing on the Mandilla mine and Astral remains cashed up with $65m in the bank.

A pre-feasibility study last year suggested the mine would rake in $2.8bn of free cash flow before tax and be paid back in less than a year of its initial 12-year mine life.

That’s at a gold price of around A$4250/oz. At A$5000/oz (around US$3500/oz), that climbs to $3.9bn pre-tax, or over $200m a year.

DFS is due for completion in the March quarter of next year.

Full article: https://stockhead.com.au/resources/cheap-as-chips-once-turmoil-ends-developers-predict-pivot-back-to-metals/