Lets see- hypothetically speaking230 million investedramp up to...

Lets see- hypothetically speaking

230 million invested
ramp up to 500,000 oz per annum @$2000 ounce (average) in 2013, 14 and 15 =1 Billion revenue per annum double the issued script to 9 billion (with possible consolidation) in 12 months or less

Reduce Opex from $1200 oz to $800 oz by improving economies of scale

We have a back of envelope of:

assume $900/oz x $500,000= $450,000 operating profit /30% tax depreciation amortization etc....

$300,000 NPAT Per annum so their payback is less than 12 months once they got to 500,000 oz/annum

Now i havent taken into consideration hedging so if we hedged 30% at $1700/oz (135,000 ounces at 1700 would be less 40 million per annum

What is wrong with those numbers compared to what we are doing today

Even with 9 billion shares o issue post placement its still around 15 times more profit for only 2 x amount of shares on issue

Therefore a NPAT of around $230 million per annum (SHANDONG INITIAL INVESTMENT)

230m divided by 9billion shares gives us an EPS of 2.4c x P.E multiple of 10 = 24c share so while the chinese are building their gold inventory the share price will slowly appreciate anyway - so at current levels you would be a fool to think the share-price would decrease so thats why i think its a screaming buy- the catch is how long will it take to get to 500,000 production per annum?? but at least we would have the cash to get there

SCREAMING BUY FOR ME!!!
MMM