THE 4 MILLION OUNCE BET, page-27

I hold shares in both, but some things need to be remembered when considering WWI:
- WWI do not own the entirety of its African operations
- its appeal and MR have not been settled
- it does not have significant operating cash
- it has not had some of the outstanding grades of DEG in its discovery
- DEG will likely have 10Moz when it does its JORC next year. At present, you could safely guarantee a 5Moz JORC (which is already priced in to the SP).
- a discount needs to be applied to sovereign risk.

I agree that WWI has more potential for bags in the next 6-12 months, given DEG MC is $1.6b. My back of the envelope calculation is that if the mining rights are granted and appeals rejected, that WWI should be valued at circa $350-$400m MC (not diluted), factoring in % of ownership, cash burn, sovereign risk etc.