Ann: Beer & Co Research Report - Kempfield Drilling VMS Potential, page-5

The report looks good. I'm no geologist so I am not going to comment on that part of the report.

The discount rate they used is 10%. I just think it's too low. Here's why.

"We have also assumed that the resulting joint venture will be able to borrow about 50% of the project cost. "
"Beer & Co assumes that ARD raises $9m in equity over the next 2 years and then sells a 40% stake in the project to an off-taker or other industry partner for a value that is related to NPV. "

Three big assumptions:
1. ARD can borrow 50% of the project cost at a good interest rate.
2. ARD can raise $9m over the next 2 years at acceptable discounts and dilution.
3. There will be 40% stake industry partner.

I'm holding ARD, have been pleased with their performance too. Had sold half my shares for a profit at $0.034, bought back in last week.

I can't glean from the report on who is going to manage the construction and running of the mine. ARD is more than competent in drilling and exploration, but is it up to task of developing and running a producing project?

Anyways. I'm holding ARD because of their frequent and detailed reports and good cash-flow management. I guess without geology knowledge as well as mine development experience I'll have to have some faith too. They're making regular progress in drilling and good at updating shareholders and at this time it's what counts.