Video Thread, page-254

On the strength of the current drill results I see little case that there is much more than 3Moz of resources defined at Hemi so far. That's just my interpretation of course and a gut feel having looked at dozens of other gold explorers/developers drill results and JORCs over the last 10 years.

I've shown my valuation earlier based on 3Moz in reserves. Again I think that is very bullish on what we know so far. I said 0.3x NPV which translates to ~A$300M market cap.

The game of plugging in 500koz and seeing what number is not how valuation or investing works. Do you know how many operations worldwide produce at 500koz+ pa (sustainably) or how many in Australia even? There are only 4 mines that scale in Australia - one is ultra high grade (Fosterville), the other three (Cadia, Boddington and KCGM (when they fix the wall)) are low grade bulk tonnage with massive processing plants. How many of them have POX plants ? zero.

Despite what you may hope it is extremely low probability that the resource grows to a level of 10Moz which is what it needs to be to get anything like 500koz production. If the argument is that they have similar geological targets etc for drilling then I've got news for you - exploration companies always say that! It's kind of a gambler's fallacy to believe that they will keep finding other deposits of similar scale nearby . Sure they have some better understanding of the geology in the region now but it is still mainly luck. This is why Nearology plays are rarely a profitable investment style in the medium term.

Let's not forget that 6 months ago these guys didn't have Hemi and had been scratching around the Pilabra for years.