Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-45

Quick calc regarding Mulgabbie. Assuming a JV in place and a production rate of 20,000ozs per year. Half going to OZM, 10,000oz at conservatively say $2k AUD margin (given heap leach is very low OPEX) that would net OZM $20m per annum.

Now say 50% payout in dividends and the rest going back into exploration at current SOI that would put dividends at around 6c per share with a mine life of over 10years. Plus exploration upside.

Just a quick rough and ready calculation but in a Gold bull market if a JV can get Mulgabbie up and running at pace i'm all for it.


Further to that apply a conservative P/E ratio of 5 and you have a MC of $100 or roughly 60c a share.


Plus any extra value elsewhere