Yeah fair enough, from what I understand RAAS are quoting $45 M...

Yeah fair enough, from what I understand RAAS are quoting $45 M post tax from Boorara + $30 M from the cash raise for $75 M total or so, gap will need to then be closed by issuing more shares. Pretty big gap.

The only issue I have with the RAAS research is that the profits from Boorara are very sensitive to the unverified processing cost assumptions. I recall an interview in which someone from HRZ said 30 $/T but the modelling by RAAS shows 50 to 76 $/T depending on the gold price, which seems to be based on a deductive approach from their other costs. The difference between 30 $/T and 76 $/T is $ 57 M pre-tax.

Or in terms of AISC, the scoping study cited 3000 $/oz, RAAS are citing 3600 $/oz, with the increase coming from the unverified processing cost assumptions. The difference in cashflow is then $30 M pre-tax.

So I guess the pre-tax cashflow uncertainty is $60 M +/- $30 M? Which is +/- 50 %.

In the update, they noted:

"Cost details remain unclear, however, HRZ’s commentary suggested unit costs were higher than expected given the initial lower grade of ore and higher strip ratio. We note unit costs are typically higher in the ramp up phase of a mining operation with profitability and cash flow generated post ramp up. We think further details on total and unit costs will be provided in future quarterly reporting and at this stage we maintain our cost assumptions for the project"

It doesn't fill me with confidence given how opaque the HRZ reporting on Boorara has been to date.

Excerpt from original RAAS report: