Hi all I thought I would re read the Investec report and Ambrian...

Hi all
I thought I would re read the Investec report and Ambrian report and I stumbled accross the Ediso report sated 040211 on the website.

Interestingly using a LT USD gold price of 1350 at taking account of the rand movement they value modder east at 76 cents. They also state that on a Pe of 14.1 on F14 earnings GDO could trade above 1.00 per share.

This ofcourse is before Vburg impact, rand impact and the higher gold price both in USD and Zar Gold

I thought I would post it as it is a good alternative read to investec and it shows how GDO at the current gold price is very undervalued. The difference between the value of ME (as they both largelry exclude Vburg and other assets) between Investec and Edison is the gold price assumptions. If you believe LT gold will be $USD 1000 then Modder east place a very discounted value for other assets is worth circa 50-60 cents. If you beleive LT gold price will be around 1300 then ME and dicount for other assets circa 90-100. If you believe gold price will be around 1300 and place fuller value for Vburg and other assets then we get back to our 1.50 valuation we all seemed t agree on before Rand Uranium. he good thing is that in reality even Investec admit that at spot ( with higher cost assumptions) Me is worth 76. So even there methodolgy if you assumed a fairer value for other assets at todays gold price would be 1.00. Again Ambrian report concludes the same thing, as they have a 64 cnet target using 1100 USD gold ST and 900 LT. Its a good reminder on the valuation is all driven by the input assumptions. The higher the gold price is today and over the next few months and years, the more likely the ave will be higher over the life of the mine and the valuations of 1-1.50 will be the more accurate numbers. Similalry it is esy to see how a potential buyer bullish on gold and uranium would be happy to take this compnay out