Everything has a price - at A$175m this is a snip. C3 costs are A$1100-1150 so the cash margin is approx A$500-550 x 150k oz = NPBT od approx A$78.75m (@A525 margin), or NPAT of A$55m give or take.
175m mkt cap divided by 55m NPAT = PE of 3.2 = snip.
I hold quite a few of these now at an average of about 25c - bought heavily in the 16-19c region. Really think they are worth 50c but the kicker to get there is as you've said, an increase in head grade so they can get towards 200k oz. With 35m-odd to be spent exploring, and with the paddington mill having put through over 200k in the past with better head grade its potentially a very good story for 2012-13.
DYOR as usual though.
NGF Price at posting:
20.0¢ Sentiment: LT Buy Disclosure: Held
