a compelling value proposition

A quick valuation

Today's close 26.5c x circa 233m shares on issue = $61.74m market cap

Cash @ 30/09/2010 = $8.2m
Est Dec quarter cash outflow = $(2.65m)
Net capital raising proceeds = $7m
Cash sale of Territory Phosphate to RUM = $1m

Total cash on hand = $13.55m (incl $3.3m cash backed bonds)

Market value of RUM shares = 16m x $0.305 = $4.88m

So, to summarise:

AAG market cap $62m
Cash $14m
RUM shares $5m
Value of CMGP $43m

In other words, $43m for a 2m oz JORC resource, which includes 614k of reserves

An E/V of $21.50/oz for resources alone, and even less if you ascribe a higher value to the reserves

Apply a conservative $50/oz metric, and the AAG market cap becomes $119m, or 51c per share

Should be a double bagger on peer-to-peer re-rating alone

And with a decision to mine later this year, this could easily be a 5+ bagger

Not to mention any exploration success, or additional resource/reserve upgrades, in the meantime

Keep the faith

Cheers