valuation

Comments please: is the following a fair analysis?

Based on QGC's latest qtrly and today's price, they have a market cap of $4.9b. They have 1300PJ of reserves.

BUL has 440m shares on issue plus about 60m options (if these are exercised the company will receive cash of about $15m - a nice bonus). Based on 500m shares @ 35c the market cap is $175m. BUL has 250PJ.

Ignoring all other prospects of both companies, 250PJ could be valued at $0.9b (4.9b * 250PJ / 1300PJ). If this is the case, BUL should be $1.80 per share (0.9b / 500m shares).

QGC are looking to upgrade their reserves, but so is BUL (and QGC are going to spend $300m to do so). QGC have prospects elsewhere, but so has BUL. QGC has access to good infrastructure, but so has BUL.

I know that QGC is producing and BUL is not, but why the difference between 35c and $1.80. Is it just a case of "buy on rumour, sell on fact"? Is it profit takers baling out? I would have thought today's announcement would have sent BUL through the roof.

Any comments would be greatly appreciated.