jus a brief comment on that tax-issue. I prefer to calculate the NPV on a pre-tax value because companies may have other tax deductions we are not aware of and it's difficult to predict what the taxes are in the first years of production which are the most important ones in terms of pay-back, financial risk etc.
But as you can see I calculated a NPAT in a parallel calculation where overheads, depreciation, interest and tax is included to calculate pay back and eps. As you can see the eps (after tax) supports a higher share price ones we're heading closer to production.
The NPV might increase with longer mine-life and Michael was pretty sure to get minelife up based on further drilling. Secondly we have to include the other projects into the value-considerations. Look at VEC - they may have historic drilling but nothing that supports a large iron-ore deposit. VEC's cap is 40m$ (EV 27m$) but apparently there is no value attributed to GXY's iron-ore tenements yet. I further think of the PIO-JV and if the manage to get the license granted Ponton could be a burner as well. So we have a great mix of an advanced project, some potential ones and a surprise type one.
Cheers
Lenni
PS: Hope that you Aussies will emancipate yourselves a bit from the US-stock markets. At the moment the ASX really has a bad run ...with 6 consecutive trading days in red territory
GXY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
