important not to forget

In all the excitment of a potential takeover its important come Mondays Ann we remained focus on the value of the company. As an excerise I Thought I would use current actuals to project 12 month forward cashflow.
I did this excercise for me so I can be clear in my thinking whatever happens over the next few days, weeks and possibly months

GDO have estimated 2011 earnings at 59 million. This is on a ZAR gold price of 9486 per oz on the 1234 oz ZAR 7.69. As everyone probably knows over the last few months rand has been very high thus resulting slightly higher costs and a ZAR gold price that has increased by about 60 percent of the USD price. However over the last two weeks rand has reversed this trend and has recently been the worst performer across many currencies. This has resulted in a record gold ZAR price, 4% higher than when USD gold hit it's record two weeks ago. It also means that costs for ME will now be closer to 430 than 479. This results in much bigger margins than estimated as ZAR gold 10460 vs projected 9486z. With many saying ZAR wlll go down further this bodes well for ME margins as well as rand uranium.

So we assume production of 135 k oz ( mid point between 120-150) and margins of 750 per oz , that 101 million in ME operating cashflow over the next twelve months.

This is something that I will remember tomorrow to help me make an informed decision as ultimately short term I will have a choice to accept or not. Let's be strong and act as a collective to ensure the ultimate transaction is as fair as can be.