as Tim Gooch has recently stated the capital expenditure...

as Tim Gooch has recently stated the capital expenditure component of ramp up of Bronzewing has now finished, meaning a fall in production costs, with the removal of excess staff and equipment. Also management hedged the fuel costs right through 2008 well below the current levels.

below is a guide as to what VRE is targeting in terms of production and costs.

- Current Production 120,000 oz's
- Total Production Costs of $574 oz
- Current Gold Price $1020 oz
- Current Operating Margin $446 oz


Projected Yearly Profit

120,000 oz * $446 oz = $53,520,000


Or EPS of

$53,520,000 / 439,055,266 shares on issue

= 12.2 cps


So with a projected 12.2cps profit it works out to be a PER of 1.4 times 2008 earnings.

I don't think there would be many companies trading on a 1.4 PER out there that is just amazingly cheap.