Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-49

@JandJ great post.

The ramble below is my understanding and not financial advice etc

Pfs was on 50k oz @$3000 and ignored the benefits of ore sorting. The npv was $33m pre tax. At $3700 (picking a number out of the air) there is an extra $35m in the first 2 years profit plus the reduced processing costs that ore sorting gives. That would give us $70m pretax NPV in the first 2 years if the assumptions hold or circa $95m in EBITDA.

Given we have our own drill, those inferred resources will be brought into M&I as timing permits. This should upgrade 200koz or circa $380m of undiscounted EBITDA at the above assumptions.

Given the ore sorting and only running a partial day shift, they have room to substantially upgrade the throughput. Lets say they choose 50k oz pa (I believe one of the kpa's), then we would be putting out 250k oz over 5 years, an ebitda of circa $475m. Thats an ebitda of $95m a year. Not bad for $30m MC at the mo.

I was doing some futher investigation into its history today and found this from the Hill End Goldfields quarterly's report in 2009. When this structure is understood it should bring certainity in locating ore and hopefully reduced costs to Reward.



The market loves high grade drill results. When they start to release some good intercepts from the ROZ, things may get a little exciting.

In addition to this they have Hargraves which Hill End Goldfields believed they could open pit. If they ore sorting worked well they could potentially truck to Reward at some future date. Hargraves had some high grade small meter intercepts back in March 2011


GLTAH