Interesting news day, page-7

Griffo. Depends. If you are starting greenfields, then it should be all costs. But at this stage they need to exclude sunk costs. It more a cost-recovery exercise: how much of what we have sunk into this can we get back.

Note that the Hartley's valuation includes the debt. So assuming sunk costs are currently covered (no change to debt), then the Hartley's valuation numbers on RGN1 can be used as a good starting point. From memory, full reserves equaled a net 22 cents (after operational costs), so assuming C sands is roughly half (we don't know the number at this stage) there is a net pick up of around 11 cents once they confirm reserves (if they are in line with the current estimates).

This deep-discount stuff cannot go on forever. There comes a point (in every company) when an outsider steps up to take advantage of it. If the reserves are confirmed (even C sands only) and if the SP doesn't rally, my money is on MIN stepping up to the plate (again, around the 45 cent mark, for the balance, and see what takers they have at that level).

All guess work at this stage.



Kit