Hi Nic,Yes in an ideal world we have all the numbers we need to...

Hi Nic,

Yes in an ideal world we have all the numbers we need to do thorough calculations. Since we are talking about the future its all educated guesses. The company have published projected PE's of 2 when the share price was 10c. The share price has since more than doubled so a PE in the 4-6 range is not out of the question. The ROE is also pretty good at +40% in year 1 and +20% in subsequent years. It don't know if this is due to mining better grades early on or they have accumlated tax losses or combination of both.

I have spent many years calculating detailed cash flow models of projects in development. These are used to justify the investment decision. However as time goes by most of the estimates used turned out to be wrong. Overall you can't beat a good high grade shallow deposit with simple proven processing technology in a good location with a long minelife and a short payback period.

Cheers,

SD