Ann: Trading Halt , page-52

I set out below a summary of the value ascribed to Murchison in 3 recent broker reports (SP valuation in brackets). Food for thought.

Hartleys ($1.23) – August 2009:

"Whilst the Murchison project contains a sizeable resource of almost 1Moz, we do not believe that the market attributes much value to this project as the potential development options are still being examined. We have not attempted a DCF valuation of the project for this reason. However, to capture some value, we have attributed A$20 per resource ounce to the project, in line with that for junior explorers. This equates to a value for the Murchison project of $19m, or 11cps. Once a development path has been chosen, we will undertake a DCF valuation. We expect this to yield a large increase in the value attributed to the project."

Holst ($1.09) – August 2009:

"The Murchison projects have nil value in our base case valuation (other than the value of the exploration/evaluation expenditure)." Note: they valued exploration for Murchison at 3 cents per share.

Keith Goode ($1.00) – May 2009:

"We have made no provision for the Murchison either in capex or production, assigning it its nominal ~$5m purchase price."