value proposition

Have been doing some benchmarking Vs BSE to determine the value of GUN:

BSE and GUN 12 month low SP- $0.08

SP- current GUN $0.18, BSE $0.62

Mkt Cap BSE -$104m, GUN-$40m

Zircon Project NPV- BSE $200m, GUN $300m

Capital Cost BSE-$250m, GUN $170m

Project Finance BSE-$170m, GUN TBA

Sovereign risk BSE-Kenya, GUN- in Australia, major risk Gillard!

BSE- Single project, GUN ? multiple projects.

I have been concerned about GUN?s ability to raise finance but BSE have clearly achieved it and on the back of that their SP has rallied so the equity they raise in the near future will not be extremely dilutive at a cheap as chips SP.

Extrapolating the above, the GUN SP will do well when financing is resolved. Using BSE?s current valuation parameters, Coburn with a NPV of $300m equates to a share price approaching $0.80.