this is reason to take a stand, page-5

Hard to answer .......but Ill have a crack at it

Value depends...what they intend to do with the resource??

Based on 400mt (my guess)....may need to be blended

So I will go with 300mt....

A JV situation....30% profit or $20t
$6bln at 5mt p.a
$100 mill p.a x production years
PE of 5 would be $500 mill MC
Or around 4 times current SP = 40-50c


Sell as a project and walk away
.....highly unlikely imo
maybe $2t
$2 x 300,000,000 = ($600 mill cash)
MC maybe $400 mill or 45-55c
however no income so SP would be erratic to say the least
would need to use the cash wisely and fast.


They go it alone....maybe $40t after costs
= $200 mill p.a
PE of 5 $1bln
about 8 times current SP
Or 90c -$1 per share.

Inferred maybe by end 2008
JORC a further 4-6 months one would think.

Figures and guesstimates late on a Sunday hurts my head...but hope this gives some guidance.

All just my opinion....
SP could be much higher or lower than stated above.

Cheers