increased production, page-5

June quarter.
SA mines run 11 day fortnight
one week lost due to public Hols (Easter, Freedom Day -27th Apr & May Day - 2nd May & Election Day - 18th May)

plus 2 days loss due to worker death

Leaves the quarter with 62 production days x 2,300 tonnes per day total x 4g/t head grade (5g/t is more desirable)= 512,000 grams x recovery 80% (85% is more desirable) 409,600 grams = 16,108 ounces

If they only achieve 2,000 tonnes per day then ounces would equate to 14,007.

Based on average basket price 4E and assuming 16koz per qtr minimum then fair value is 0.52 (based on PE of 6, discount factor of 15%, current AUD$,.

back to back quarters of achieving minimum 16koz + evident improvement then i would assign a PE of 8 and reduce discount to 10%. Fair value would be 0.74.

Yes, i am back in but only holding half my previous position.