speculative projections, page-5

Hi Fishinnick

This is how I read tailspin's spreadsheet

FY - Federal Year
Total Shares - self explanatory - total shares
Tax - tax rate
Production - tailspin's production estimate for ounces of gold
SP - price of gold per ounce
Prd cost - production cost
NPAT - net profit after tax
EPS - earnings per share
PE15 - projected share price on a P/E multiple of 15
PE20 - projected share price on a P/E multiple of 20

So in effect tailspin is saying the share should be worth a minimum of 10c this year, and a minimum of 32c two years from now.

Assumptions in this as far as I can see

1. production can be ramped up without dilution. Maybe reasonable, if the company ploughs its earnings back into production expansion and exploration
2. There are no expiring oppies in the next two years (someone should check this)
3. He has assumed a minimum price for gold of $1250 / ounce, otherwise the calculation changes
4. Production costs are $950 / ounce. I thought on the last figures they were actually coming down to about $890 at the moment.

Hope this helps, and maybe tailspin can confirm whether I've read this the right way up.