GENERAL DISCUSSION ON AMI SHARE PRICE., page-33

I hope you are right Croc 16. To answer your question in a round about way. The reserves were 202koz. We paid $200 million. Then add interest plus other costs to date that we didn't expect to have to pay so say $230 million all up to date. Let's make the maths easy. Lets say we have an AISC of $1441 we hedged at $2441 so we make $1000 an ounce. On the known reserves we get back $202 million, so we end up losing $28 million after the 5 years LOM all going well.
The last exploration results might mean we extend the reserves a little but they won't do it. I keep asking where the excellent identified exploration targets are but as yet we seem to be just drilling in and around the current reserves, no doubt hoping to extend them. It becomes critical that grades do improve at depth and that we average the 5.7g/t over the LOM otherwise the loss ends up greater. It is just as critical we strike something substantially better than what we have done so far, amongst the so called excellent (yet to be identified to shareholders) exploration targets.
Knowing our share price dropped substantially leading to the Dargues purchase, allowing a placement price of 43c, you'll see why I believe we sold a stake in Federation, Kairos and Great Cobar too cheaply. If immediately on owning Dargues, we were actually worth the 43cps, then since it has continually underperformed on the mean figures for grade and tonnage milled almost a year in, and has cost us millions extra, I'm not surprised we are trading at a discount to the issue price.
Like I said, I hope you are right, I hope we identify targets and start drilling elsewhere in the Dargues region and by golly I hope we hit something substantial. Regardless of whether it turns up trumps, we've paid too much for it given the current risk, diluted our shares too much, sold a stake in Federation etc too cheaply, and depressed the share price substantially.