Ann: Quarterly Activities Report - Dec 16, page-7

Thank you civil for the post ; it was astute of you to pick up the further hedging comment at the AGM.
Recent near bonanza drill results indicate that the LOM has been increased significantly over the past 6 months; so much so that the market deserves a reserve/resource update. This, IMO would boot on the SP towards your 30-35c by May & Heartly's target of 41c-46c for 2017.

A throughput grade lift of say 20% would add $24 mil to the annual bottom line without any extra imput costs.
This would only mean a lift from 5 g/t to 6 g/t for gold, PB from 2% to 2.4% & ZN from 3% to 3.6%
and would , overall, lift NPAT from $30 mil to $54 mil. This, in turn would lift EPS from 7c to 12.3c
or at a P/E of 6, a share price lift from 42c to 73c.

We are paying a premium salaries and bonuses to senior management & board so we should expect
premium performance and a lift of 20% is not unreasonable now that we have solved the teething
problems