Ann: High-Grade Pepper discovery extended, page-79

Interesting that Tembo may be signalling talks would begin at $1 a share.

My very crude valuation yesterday was same ballpark.

Never Never – 1.75m ounces (an increase of 850,000, which is the mid-point of the Exploration Target).
Pepper – 200,000 oz. We will find out soon if this is realistic or too conservative.
Gilbey’s Complex – 990,000 oz, an increase of 250,000 oz on current resource, primarily from additions across Four Pillars and West Winds
Archie Rose – 39,000 oz, as currently resourced

Total ounces at Dalgaranga is 2.979m.Euroz uses resource valuation of $477/oz in latest SPR research (peer group BGL, DEG, GMD). Seems a bit bold on the peer group (?), let’s discount that by 20% to $381/oz, which means Dalgaranga ounces are worth $1.137bn.

Add Yalgoo 244,000 oz x $88/oz (hard to know how to value these but KIN sold stranded ounces for $88/oz earlier this year) for $21m in value.

Add Glenburgh and Egerton (537,000 oz x $88/oz) for $47m in value.

So SPR’s total ounces might be worth $1.205bn.

I'm not assigning the plant any value, as the Dalgaranga ounces are being valued as a producer.

But add $110m in cash and about $50m in future tax credits.

Subtract perhaps $100m in debt for plant restart

Full valuation of $1.265bn

Current shares on issue about 1.1bn, but let's assume another 150m of shares are issued to fund restart

1.265bn/1.25bn shares = $1.01 a share