Hi all,Having gotten out of another goldie after the worst...

Hi all,

Having gotten out of another goldie after the worst takeover deal imaginable, I have siphoned my funds over here. I have had my eyes on this for quite awhile and I was hoping to get onto this before its inevitable upward price move. My reasons:

Market cap: 875 million
Cash + liquid assets: 240 million
Long-term debt: 50 million
Enterprise value: 685 million

200,000 ounces/yr average
Cash costs (conservative) of 700 USD/ounce
137000 ounces forward sold (I think they are out by next yr)

Say average price received of 1200/ounce (look at the last few quarterlies)
Operating margin of 500 USD/ounce
500*200000 ounces= 100 million USD
= 95 million AUD
NPAT of 95 million as there is a 6 year TAX-FREE holiday.

With a required return of 10%
Gives an EV of 950 million
Add 190 million (cash + liquid assets - debt)
= 1140 million

1140/331 million shares = 3.45 share

Not to mention that when the hedges are sold out, the profit skyrockets (same calculations above with margin of 800/ounce gives 5.40/share).

Not to mention:
10 million Oz resources + reserves Masbate
Exploration upside Masbate
What looks like another giant in King King
Increasing mill output to 6.5MTPA (although currently processing above design requirements at 6MTPA!) with a subsequent upgrade to 10MTPA
Much better
And did I forget the 6 year tax free holiday!