all systsens go, page-2

based on some of the figures in this article, here is my qucik figures. Any feedback appreciated.

Some quick figures

Assume:::
Spot price of gold
$785.00 USD = $897.561 AUD

Profit per Oz after costs ($785-$400) = $385per Oz
$385.00 USD = $440.193 AUD

Current profit per year -
84,000 Oz @ A$440 = $36.9M

When it ramps up
135,000 Oz per year @ A$440 = $59.4M

Based on resources estimates
Allied has current reserves and resources of 17.7Mt grading 1.37gpt, for 785,000oz, on Simberi, and extensive exploration prospects on the neighbouring Tatau, Mapua and (Big) Tabar islands.
785,000oz @ A$440 = $345.4 M

There are 302 million shares on issue @ 75.5c (Current SP), which gives ALD a market cap of $228M.

If you based it on the current resource estimates, should this share be valued @ $345.4M / 320M shares = $1.14 per share?

There is also a very high likelyhood of this resource figure been upgraded... (see below)

Allied has current reserves and resources of 17.7Mt grading 1.37gpt, for 785,000oz, on Simberi, and extensive exploration prospects on the neighbouring Tatau, Mapua and (Big) Tabar islands. Kennecott and Niugini Mining started to get serious about exploration on the islands in the early 1990s, but Allied’s more recent surveying activity has identified numerous untested targets outside the main ones on Simberi the company inherited when it acquired Nord Pacific in 2003. It expects to get its 1Moz of oxide reserves by drilling around and infill drilling known deposits, principally the main Sorowar deposit in north-east Simberi.

Thoughts Anyone?