valuation beyond start of production

the numbers have been done as to agm's valuation upon start of production and most would have sifted thru the muck and seen them at some point.

but what about valuation beyond this point.

we know agm are likely to get a second ball mill and double production to near 20,000t per annum and this decision will be made sometime during 2008 once they have confidence that the resource can be increased. it's worthwhile noting that limited exploration has bee carried out at the current mine site and surrounding areas due to managements preference to progress to development of the current known resource so the coming 12 months should provide us with not only upside from production but also a vigorous exploration program.

so what value would be placed on each 10,000 tonnes of additional nickel.

using us$10 per lb it is safe to say each 10,000 tonnes nickel equates to nett earnings per share over the life of the mine of 11.5c, or $85 million.

the importance of increasing production to 20,000t per annum is that a larger percentage of the ni resource can be valued using a ni price that more closely reflects the nearer forward prices so us$10 per lb is pretty conservative in the current market.

just some food for thought as we progress to production at which time some may wonder, what next.

cheers