there we go 100% of zari, page-40

King Louie - I think that "halve(ing) the ratio to 13.25", at this stage of the game, is actually being very aggressive in a company valuation. Long term, it's probably eminently feasible. But right now, consider the following points:

• We don't have a formal JORC-compliant estimate.
• We don't have any orders - or even memorandums of understanding - for our resource.
• We have funds that are earmarked for further drilling to shore up other regions that we're licensed to explore, but almost certainly not enough to build an actual operational mine. (Ergo: dilution through a capital raising of some sort is a near certainty.)

LYC, on the other hand, has the JORC in the bag; an operating license for their refinery in Malaysia (fairly sure it's ready to go once the ore ships over, but I won't swear to it); and buyers lined up for their goods.

There's still a lot of risk in this company. Sure, much of it should be a formality, but it has to be taken into account when figuring out where the share price will end up in the short term.

Right now, I would consider $6+ to be a gross overestimate of the company's value. $1, maybe $2 at a stretch, is justifiable, IMO. If the share price hit six dollars tomorrow, I'd sell without batting an eyelid, and wait for the inevitable fallback to more realistic levels before buying back in.

Don't get me wrong. I'd consider your prospective figure to be realistic, but only in the long term, once we have buyers lined up, and a mine near operation. Patience is the name of the game. Everything looks very good, and extremely promising - but right now, we're trading on future potential, not current reality, and that will only buoy the share price so far before the potential has to be converted into fact. Even the JORC will only do that to a limited extent. It's an important, and highly significant milestone, but it's not the end destination. Don't lose sight of that fact in the exuberance.