Penny West prize, page-4

Normally when you look at in-ground values you apply pretty hefty discounts (80-90%) to allow for cap costs and operational risk. PN has great grade (13.8 gpt gold) and metallurgy which negates much of the operational risk but based on the resource of 355,000 oz and gold price of $2,200 per oz, you're looking at a RAW value (with no costs taken into consideration) of $781 million (Australian Dollars).

Now apply an 80% discount and you're back to around $156 million. Alternatively, if you want to get technical you could say 50% op costs for mining and toll treating ($1,100 per oz), which would give you a value of $390 million - anyway, pick a number that suits you!

None of this takes into account the upside to the resource or additional discoveries. Given the companies in the region have quite modest market caps (VMC = $33 million, RXL = $28 million & SPX = $107 million) PN is quite the prize!

It makes you wonder what VMC was doing for 4 years while the others were getting their act in gear?