Hi all, just like others here I have been investing and holding...

Hi all,

just like others here I have been investing and holding EXG for years now and personally am a big fan of the David's in the management team; always conservative and delivers on their promises.

Made some quick calculations with regards to the news from 31/12:

Assumptions:
1. Average costprics is AUS$1100 per ounce
2. Average Sale price is AUS$1500 per ounce (20.000 ounces hedged @ 1575?!)
3. Recovery rate of 1.66 g/pt (even though this should be getting higher along the way)

Conservative:
190.000 ton per Q with rr of 1.66 g/pt
On a yearly basis this means: 190.000 * 4 = 760.000 ton p/yr
760.000 * 1,66 g/pt = 1.261.600 gramm gold = 1.261 kilo goud.
1.261 * 35.27 (= conversion from kilo's to ounces) = 44.475 ounces p/jr * $400 = AUS$18mln = 3,5 cent per share

Optimistically:
190.000 with an average recovery rate of1.85 g/pt
760.000*1,85*35,27 / 1000 = 49.589 ounces = AUS$20mln = 4cent per share

Notes:
-the costprice of 1100-, AUS$ is probably higher then the real cost per ounce at the end of this year.
- AUS$ 10mln need to be invested in Zorastrian deposit to make in mineable (i dont know if this was included in the costprice of 1100$ per ounce)
- The drillresults indicated that recovery can be up to 2.2 g p/t in the side deposits.
- A broker who knows EXG expects that excelsior will produce up to 60.000 ounces this year.. we will see.

Cheers.

G.