Cash Flow Model, page-72

as long as you don’t use debt and you’re young enough to start again if you get wiped out, there’s no reason not to take a punt like that. As johnyb says, it’s becoming less of a spec punt now, as it’s in production and cash flow positive. The only obvious risks are a major global dump in either the IO market and/or the overall market. I’m sure you’re keeping an eye on IO prices. It’s up and down, but over $200. FEX is still making money at much lower levels. If I was in your shoes, I’d probably have an IO price at which I’d start lightening and a price where I would sell out. But these would be under $150 for mine. if I could afford it, I’d probably hold some right down to their feasibility price. It Lao depends on that all important LOM. They need to find more either on current tenement, or in the new JV ground, or with a clever acquisition of new ground, or new JV.
Also depends on your overall financial position.
good luck with it.
cheers,
ned.