Ann: Investor Presentation, page-11

I think the correct peers for PNR are Karora and St Ives (Goldfields). This will take 5-10 years to unlock and expand. If you assume $50mpa in development cost (ex Mill Upgrade), these costs were in the original model, I think you get yourself in the 200-250ktpa range within 5 years. That is only $250/oz of production, less than half of the gold price increase over the past month. At that level operating cashflow is over $400mpa. Two more points, PNR has massive tax losses. Also if you look at the Underground resource grade, it is one of the highest in WA (11.3g/t). The question is the Cash costs for the underground operations and PNR have been saying <$1,700/oz for Scotia. If this is the standard for the underground operations the operating margin is already $2,000/oz. If they can execute, this has plenty more left in it. My price range benchmarks are as follows
1) De-risked commissioning, 8-10cps
2) Early takeover offer, 15cps
3) Expanded operations, no further gold price increase, 15-20cps
4) Expanded ops and increased gold price, +20cps