I have had a read through the 2 latest Hartley reports and would...

I have had a read through the 2 latest Hartley reports and would make a few points;

1) Clearly Hartleys have a good insight into the company as the JORC pretty much came in bang in line with what Hartleys were forecasting for the maiden resource. Leaves plenty of upside.

2) Hatleys financial modelling is similar to mine and seems to work on total cash costs of $266/ounce for the oxide phase and $500/ounce for the sulphide phase....these are very low numbers but given the grade and depth are possible.

3) Hartleys show a nice chart of all the grades of the open pit CU/AU miners on the ASX. There is no one really near the Mabilo deposit for grade/open pit....one of the closer ones shown is Didipio (Oceana). if is about 1.3gpt AU and is currently producing at what they claim are cash costs of around $600/ounce....thus supporting the cash cost estimates for Mabilo.

4) They have put back the start of the DSO until 2016 to account for potential delays in the mining permit application. They claim this is a key risk and catalyst....but presumably given the quality of our management and parters this shouldn't be a problem.


Valuation is $2.22 per share but with upside from any further resources upgrades.