5 reasons to buy cto, page-13

They have bought two drill rigs, third on order. Stated purpose is to increase resources outside the 10 Moz and convert resources to reserves.

At $25 per resource ounce, and $400 per reserve ounce (the profit margin), and 614 mill shares issued consider the following:
10 Moz resource - $250 mill - 41c per share
If resource increases to 15 Moz, 61c per share
If reserve increases to 2 Moz, $1.30 per share

Steve Bartrop of Fat Prophets is quoted as saying, "never pay more than 10% of the in-ground value of the metal" - 10Moz in-ground value is $800 mill at A$800 per oz - $1.34 per share.

The key things to look for now are increases in resources and reserves. They have the rigs and drilling has commenced.