Deffenatly looks like it could surprise, just had a quick look...

Deffenatly looks like it could surprise, just had a quick look at the quarlerly and the recent annoucement and looks very promosing.

Delivery of 10,507 dry tonnes of ore from its Bullant Gold Mine (?Bullant?) with recovered gold of 1,241 ounces from this, its first shipment of ore to Kanowna Belle. This represents an average grade of 3.95 g/tonne for the development ore at a provisional recovery of 93%, with future ore delivery grades expected to increase upon commencement of open stope mining. At the contracted sale price gross proceeds to the company will be approximately AUD$2.1 Million (before haulage and processing costs).


A few quick caluculations.....

10,507 tonnes at an average grade of 3.95 g/tonne for 1,241 ounces valued at $2.1 million.

They are currently mining the ore at 700 tonnes per day.

10,507 t divided by 700 tonnesper day = 15 days

15 days creates revenue of $2.1 million minimum as they suggest grades will improve.

If we work it out on a quarterly basis thats
$2.1 times 6 thats about $12.6 million revenue a quarter or $50.4 million revenue a year for a company with $6.5 million cash and a market cap of $28 million.

We need to know what the costs are to better put it in context but even if we are very conservative and suggest that 70% of revenue is costs which is about $35 million that still leaves $15 million profit!

Using a conservative PE of 8 thats a market cap of $120 million. 4 times the current sp.

Looks very cheap to me....