I just posted this on another forum in response to a similar...

I just posted this on another forum in response to a similar question regarding GTM price.

From looking at the scraps of paper with my last Fridays back of the envelope calulations I have a rough figure of $72million profit from the Chariot resource.

resource 240,000oz @AUD600 per oz
= AUD144,000,000
minus cash cost per oz @240.00 per oz of AUD57,600,000
= AUD86,400,000

of which half is hedged @ AUD561.00 so
120,000oz @AUD561 and 120,000 @AUD600

=AUD72,000,000 approx net profit (excluding any finance debt etc.)

Please tell me if this a reasonable figure or if something major has been left out of my quick calculations. However with the resource open and improving at depth and to the west and lots of other prospects available to them in the Tennant Creek area, I think the current capital valuation of GTM at AUD28m shows room for improvement.