Hopefully NMC are worth around 8 cents to a bidder, but it is...

Hopefully NMC are worth around 8 cents to a bidder, but it is difficult to see a substantial rise above this.

SBM's " Valuation of NuStar " on 19th October 04 gives a valuation range of 2.2 cents to 3.1 cents a share. This included adding back the $1.3 million deposit paid to St Barbara for the Paulsen royalties.
The figures were produced using a US$418oz spot gold price and a US exchange price of 0.72 ( Aus$580.56oz ) as at 30th September 04.
A real tax discount rate of 9% for NuStar was assumed.
The Paulsens Project was given an indicated and inferred resource of 1.44 Mt grading 11.7 g/t Au. The probable reserves of 1.2 Mt grading 10.7 g/t Au to be mined and treated at an annual rate of 250,000t.
Exploration values for tenements at and adjacent to the Paulsens Project and regional projects, determined by similar methods, give technical values at $1.2 to $1.7 million ( preferred value $1.4 million )

The Technical Value for NuStar's assets given at $10.3 to $18.8 million.

Operating costs at Paulsens were given as Aus$316/oz and including capital at Aus$431/oz., based on AMC's production schedule, the unit cost for a 250,000 tpa.

The above should be read in conjunction with the St Barbara Mines " Proposed Restructure of Shareholdings in NuStar Mining Corporation "