feas confirms its a goer, page-43

Robbo,

Sorry for not getting back to your questions sooner.

You have asked a questioned about what I value GXY shares at. I don't particular like to set a specific price on a share for a company like GXY at its current stage of development. So many Ifs and but options when valuing the shares (as opposed to one of the company's projects). I am more than likely to get it totally wrong.

For a company like GXY I prefer to keep it subjective. At 0.60 per share, GXY has a fully diluted maket capitalisation of about $33M. This is substantially under the calculated NPV of Mt Cattlin Project.

As you would have noted Lenni has done a good NPV calculation for this project on the other thread. The only difference I would make with that calculation is to incorporate tax payments to come to a lower NPV figure for the project. He, or someone else on that thread, has also assume a debt/equity financing split to work out a value per share while noting a value for the other projects.

Apart from the tax cash flows, I can't disagree with anything they have done.

However, having said that, I would expect a positive increase in the valuation of GXY when the various steps towards getting the project up and running are achieved. For example, Bankable feasibility study completed, Offtake agreements signed, financing confirmed, construction contract finalised and no problems with ramp up to full production. Consequently, to get todays value you would expect it to trade at a discount until each of these steps are achieved.

As far as GIP is concerned. It also has about the same Market capitalisation as GXY and will generate about the same cash flows from its 50% share of Abu Dabbub project as GXY will generate from Mt cattlin. However, it is much further down the road with a completed Bankable Feasibility study and offtake agreements already signed and financing expected to be completed in the new year. They obviously have different portfolio of other projects and different soverign risks to be considered. I hold both.

Hope this answers your specific questions. Perhaps you are better to rely on the other posters for specific valuations.

Regards

SP