Ann: Infill Drilling at Korbel Continues to Deliver, page-83

Hi Wombat. I won't post all my workings, but your numbers for both IRR and NPV are VERY similar to mine (28% and AUD$495m) based on where you were at prior to this post. I do note that you have amended some of your assumptions e.g., capital intensity, gold price, LoM, AISC to name a few - pretty major tho - which I have not worked thru my spreadsheet but may do later. However, it looks like you are still working on 1.97b SOI which I will agree to disagree on. Personally, I think SOI at Production could be @ 3bil but its anyone's guess. I say this because, if I recall properly, when you first posted a financial outlook we all thought that SLR (thru its MoU with Tanco) would provide up to USD10m pa to support Estelle/Korbel and that 100% debt funding would be achievable. I doubt this. And, with all the options and performance shares already to be issued / converted I think we are looking at 1.9b SOI without any further dilution (CR). Thanks for sharing your numbers - they give me some confidence in mine. This makes the Scoping Study all the more critical for me. Oh, as a note, change the discount rate to 8% and see what happens. Regards to you.