Hi allI haven't posted here for a while but with all the recent...

Hi all
I haven't posted here for a while but with all the recent activity I thought I'd update my valuation model for EXM, which I think i posted here a few months ago.

I have based it on the current number of shares and options on issue (geez,2.5billion heads is a lot) and incorporated only the value of the current gold resource of 1.1m ozs. Anything else is a bonus from there.

Assumptions are a gold price of AU$1,200 per oz with cost of production at AU$360 (per co estimates). In addition I have assumed an additional capex requirement of $30m funded by an equity raising at 5 cents.

What that indicates is a valuation of around 27 cents per share AS A PRODUCER.

Yes I know we are a long way from being a producer and this is a pretty crude model, but it does give me pause to reflect why I bought the stock originally.

Personally, I doubt very much that EXM will ever get to production on it's own merits. There are a lot of very cashed up mid tier producers out there who desperately need to shore up their resource base for future operations. Consolidation is the buzz word I keep hearing about the gold minnows.

Not sure if the recent few days of significant volume reflect someone starting to build a position, anticipation about the drilling results due or just the day traders having a bit of fun. It sure is interesting though.

All the usual caveats: IMHO...DYOR...TGIF.. :)

Cheers