directors buying, page-9

It was nice to see a little movement up last week. Pity to see a small tick down to .007 at the end, but the buyers are building and it might only take a good move up with the POG to set off some buying.

If anyone doubts that EXM is bargain territory at less than a cent a share I would suggest they have a look at this evaluation of aussie gold stocks.

http://www.kingsgate.com.au/sx_releases/Broker%20Reports/2008/Alto%20Capital%2011-08-08.swf

In particular have a look at the EV to resource values on page 18. I know this report was written in August, but it has relevance in comparisons of the majors, midcaps and explorers. EXM isn't included, but we can quickly see that for our resource we are extremely undervalued.

At .007 per share with $3m cash our EV is a little over $8m. With 1,177,771 ounces, our EV per in-situ ounce of gold (not counting copper) is less than $7 per ounce.

Now, I know we can't be compared to producers, who have EV/resource valuations of $50 to $300 per ounce, and in the case of RMS $1250 (they say $1722, but I've converted down to the latest sp of 53c).

But we are definitely at the low end of the scale, and amongst the lower half of the whole list we have by far the best resource in terms of size and grade. Companies with around a million ounces have much lower grades, or if the grades are comparable to our 10 g/t then their resource is much less. NAV are valued at $20/oz (down from their stated $31 with the sp at 18c now) and their resource of 870,000 ounces is only 2.2 g/t.

Have a good look at the comparisons and you will realize how undervalued EXM is even compared to peers in the small explorers. We have been sold down way too much, and hopefully the bounce back will be just as dramatic.