re: Ann: Pre-Feasibility Study Summary - Mt K... UpmarketNever...

re: Ann: Pre-Feasibility Study Summary - Mt K... Upmarket

Never said my strong point was economics but here's my lay person take on what was presented this week.

Perhaps you could give me a few pointers on where my logic (if it could be called that) is wrong

+/-30%

Gold
In reserve 1,000,000 oz @ 1650 + $1,650,000,000
In measure resources (assume) 50% of 500,000oz @ 1650 =$412,500,000
In indicated (assume) 25% of 500,000oz @ 1650 = $260,000,000
Total (gold) = $2,322,000,000

Silver
8,000,000oz in reserve @ $30 oz = $240,000,000
In measured resources (assume) 50% of 6,000,000oz $30 oz = $90,000,000
In indicated resources (assume) 25% of 6,000,000oz $30 oz = $45,000,000
Total (silver) $375,000,000
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IGRV + $2,697,000,0000
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Assume LOM Capex & Oc’s = 1,150,000,000
EV = (Base value (not taking into account that EV in gold mining tends to always be higher than the math suggests and in rough figures, we don’t include tax) $1,547,000,000
Assume an issued script of 800,000,000
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I get about $1.93 per shares

I put the Market Cap (having regard to the fact that Gold EV's tend to be about 15-20% higher than the mathematical numbers suggest and the distict possibility the gold will be over $1900oz, and silver over $40oz to be around the $950,000,000 to $1,000,000,000 mark.

This are rough calculations so please feel free to tell me where I am wrong.

Above based on presumption based on not only just the PFS but also the resources values as I see them at the time BFS's completed, otherwise as currently reported.