Ann: Consolidation/Split - AZI, page-104

@ bosto. Using 5 million tonnes as the minimum amount of mineable resources required to re-open the mine, revenue per share would be US$2.10 processing this at current spot metal prices. Usually a 50% gross margin is required to get a decent rate of return. In the case of Gorno it will be less high as initial capital expenditure is relatively low with much underground infrastructure available. Moreover, underground operations typically have only 3-4 years reserves as proving up more is costly and impractical. During operation continued exploration and drilling will prove up additional resources and the 5 years will stretch out much, much more. There are enough targets at Gorno to ensure this.

Anyway, the above must be seen as very indicative, and cannot be used as proper valuation. Even at US$1.00 per share EBITDA over 5 years, this is undiscounted, excludes initial capital expenditure, taxes, etc. However there is also the prospect of better average grades than historical resources and a much longer life of mine. All-in-all, this is an excellent risk/return opportunity at current prices.