I don't agree.... the statement is cash positive with an NPV of...

I don't agree.... the statement is cash positive with an NPV of $36m including reasonable funding costs at an 8% discount and an IRR of 31% with a payback period of 2 years.

These really aren't bad figures at all given synergies that can be made with satellite deposits that have not been included due to their early stage of development. Addition tonnages would pretty much be cream with mining costs taken out.

The catch and what would be scaring people is the $60 million capital required to set the show up.

All projects are sensitive to metal prices and exchange rates to some degree. I think barring a complete collapse of world markets the metal prices are conservative enough.

It really comes down to whether investors believe these guys can pull off a project of this size. Certainly based on what has already been classified as resources and the potential for some good additions with further exploration mean the company is undervalued by the market at present.

I was hoping for a little better figures than these but this is not a bad result.