this looks like a bargain, page-6

i'm in mainly because ray chantry has a strong buy on this, and imho chantry is one of the best resources analysts in australia

ok i'm not sure how applicable all this is but here goes...

they produced 34.5 kozs this quarter, for an annual prod. rate of about 140koz/yr. cash costs this qtr of $431/oz. i dont know what all this hedging business is about but lets say they get around $550/oz gold on average. that's 119 x 140 = approx 16m cashflow / yr.

the market is valuing the company at .69 x 81 = $56m
they have 21m net cash position so the market is valuing the gold business at 56 - 21 = $35m

company is looking to lower cash costs down from 400 something to 300 something, and they are doing some exploration drilling i think, so upside there not included

35m gold business with 16m/yr cashflow seems decent