Ann: Further High Grade & Expanded Footprint at Hemi, page-324

My question was: Is this shareprice of 0.81 justified ?
My calculation:
Already in the inventory are ca. 5 Million ounce (I guess with new drillingresults it is perhaps conservative)
What price per ounce in the ground is justified?
The goldprice environment is very supportiveAUD 2,600
My guess for this Tier 1 asset without any problem AUD 300 - 500
I take conservativeAUD 300 (2,600 - 300 = 2,300 GP)
With the ounces already in our inventory a valuation of AUD 1,500,000,000 (ca. 1,25 per share) is justified.
The shares have to reflect the future expectations.
DEG is just drilling the first intrusion (ex. Towerana) with incredible success.
There are nearby several other instrusions, which have already shown nice mineralisation results.
I don´t know how much ounces DEG will find, but my expectations are min. 50% of our inventory of 5 mill
means 2.5 mill - (very) conservative - = AUD 750,000,000
1,500 + 750 = 2,250,000,000 marketcap
In my view a shareprice of nearly AUD 1.90 is - today - more than justified
That´s no joke and that´s not an aggressive valuation
With drilling success at Scooby and Antwerp a big boy has to pay (much) more … and he will pay
(hopefully not in the near future)