KNL reversal, page-124

Bigbaby, when I take a long term view I can come up with a pretty sound investment. And I know that generally, the final value will be reflected in a closer share price, which will be many multiples of where the start was. However, that doesn't mean I know how that's going to happen on the way through. Too many traders playing funny buggers either with or against each other. Q1 & Q2 next year aren't actually that far away. While I know what fair value might be to me, that doesn't mean that the share price will reflect that fair value for a long time, or a short time (or possibly ever).

What I do know is this. By Q2, for Epanko, we'll have finished all the environmental and social base line studies. We'll have the final issued environmental certificate. We'll have the mining licence application, and will be almost finished the detailed feasibility study and be working on the processing plant and infrastructure.

By Q2 we'll have Merelani being worked up, and probably have overtaken Epanko in terms of being closer to production with more boxes ticked (by virtue of the fact that a lot of those hoops have already been basically jumped for Merelani due to past operations). We will probably be less than 3-6 months for initial production from Merelani, and 6-9 months for Epanko.

What's all that worth? I can't say for sure, because we don't know enough about the financials for Merelani yet, but I'm confident enough on a base case to know that it's got a $ in front of it.