Thanks Box. My personal view is that Paulsons Ounces and...

Thanks Box.

My personal view is that Paulsons Ounces and Ashburton project ounces have different values.

In terms of Australian gold sector average the number is approx $143 p/resource oz.

Now I think you could argue Paulson ounces are worth more than that, maybe $250 (this is being bullish). So 318,000 Oz at $250 = $79,500,000

That said, Ashburton Oz are tougher (being sulphide material) and the production potential will require significant additional capex. Therefore I would apply no more than $50 p/ounce to those ounces (at the moment).

So 1,000,000 Oz at $50 = $50,000,000.

Place the two together and you get $130,000,000 which is an average of $100 p/resource Oz. This is value, not suggesting it gets here - it will likely trade at some premium to this.

Let you do the math with the rest of it. BTW this is not a harsh view, I think the company is very very well run, hence the premium it has achieved in the valuation. What we now have is the froth coming out and a reversion back to real value which I agree with other posters is closer to $0.60.