WAForgive me if I am wrong but I thought they valued the gold in...

WA

Forgive me if I am wrong but I thought they valued the gold in ground at around $100-$150/oz, not the spot gold price & if that is correct 318,000 oz is worth around $31.8m to 47.7m in the ground

With 5.6b SoI you would need 5M oz in the ground (value $500m to $750m) to get the SP to 10c

Happy to stand corrected on how the gold in the ground is valued - all I can guarantee is that it wont be the spot price

If you look at it on an earnings basis then lets assume a cash profit of 1500/oz (possibly wildly out) then to earn 10c/share ($560m) the company would have to produce 320,000oz/year. You would need a resource of 10 times that so they could mine for at least 10 years!! Earnings of 1c/share (ie mining only 32,000 oz) might get the SP to 10c on a PE of 10

All my figures may be way out but we have to walk before we run & be realistic about the company's prospects - I'd love to see the shares at 10-20c but I think that is a long way off

However you cut it, with 5.6b SoI, OAU needs a humungous amount of gold in the ground to move the SP needle