Hi Riverred, tonnes of assumptions in this but if you or anyone...

Hi Riverred, tonnes of assumptions in this but if you or anyone else has any questions happy to try and field them.

Current reserves are 1,500,000 ounces. So a 20% increase would be 1,800,000 ounces. DCF would look something like this with all the assumptions I have made. One of the big ones was to use a discount rate of 8% for my NPV calc. I think standard practice is 10% but with global yields in the toilet I think the risk free rate of return is far less than it used to be so 8% or maybe even as low as 7% is a more reasonable hurdle rate.

Ore + 20%

Ore + 50%



So the trick to increase our DCF valuations from here in terms of things that are in our control basically come down to two things. Continued expansion of our resource so that we have more ounces in the ground. Producing more ounces which can come from increasing head grade above current reserve grade via high grade finds or increasing mill capacity if the gold is there to justify it. And lastly reducing AISC. Increasing ounces should do this by spreading fixed costs across a larger production profile.