News: AUN Aurumin Says New Tenement Granted for Sandstone Gold Project, page-9

That's exactly right. Any refurbishment could be primarily funded by debt to minimise any dilution. This should be more viable, given the estimated refurbishment time is expected to take just 5 months. After that, we could use cashflow to pay back the debt.

1. If we assume production 26,500 ounces per annum (500ktpa @ 1.5 grams of Gold per ton) at $3,050 AUD, then that would equate to around $81 million AUD gross revenue per annum. Assuming total production costs are half that (i.e. around $1,500 per ounce), then that could leave us with a gross profit in the vacinity of $40 million per annum. Not too bad, given our market cap of around $10 million.

2. Based on the above assumptions, but assuming we increased the processing plants capacity to 750ktpa (that the company has indicated is a possibility), then that could potentially boost production to around 40,000 ounces per annum. That could mean gross revenue of around $120 million AUD, and a gross profit potential of around $60 million per annum.

A few assumptions in there, but I personally think we have some great potential. The next major step will likely be to build some critical mass by building the resource. I would like to see AUN gobble up some of the stranded satellite deposits nearby to build some mass. This might be achieved relatively cheaply with royalty arrangements?

All in my humble opinion.