buy rating reaffirmed 31/7, page-6

Given the guidance for December quarter of 35,000 ounces, lets assume this financial year they achieve 130,000 ounces produced.

If you assume roughly a 600 profit margin you end up with EPS of about $0.39 so with a P/E of 10 you'd get a $3.90 share price.

If you assume roughly a 800 profit margin you end up with EPS of about $0.52 so with a P/E of 10 you'd get a $5.20 share price.

As long as gold stays above $1,300 I think we can expect roughly a $3.50-$4.50 share price by EOFY. Should gold move back towards a $1,500 level and production surprises to the upside a little then we could reach that price range by the end of this calander year.

This stock peaked above $8.00 when production was just 100,000 ounces and the gold price was roughly $1,600. I'd be disappointed if it didn't eventually get back to this point in the next 24 months should the gold price move back above $1,500