new investor presentation out today., page-4

There is an unpredictable time lag between the definition of a large resource and the market adjusting its perception of the value of that resource.

PRU has a gold resource base of 7 million ounces that is economically mineable. In fact the $US350 mining costs place the resource in the lowest cost quartile. Moreover, the input costs of mining are falling while the gold price has been on an upward path.

Using conventional resource valuations of around 6% for inground resources [see RCR reports] at a resource valuation of $US6.5 bllion there is a valuation of $US360 million or $A500 million for PRU which coverts to around $A2.50 share.

An interesting example of the market creating a new valuation model is Extract Resources which held around $1 or so for four years and in three months is over $4.