I want to start this thread in an attempt to discover and debate...

I want to start this thread in an attempt to discover and debate what the potential share price of our beloved GOT will be both short-term (6 months) and long term (2 years).

I wish for all replies on this thread to be based on reason and logic. Conservative and sensible discussion is the only way forward from here. This would benefit us all, not based on pie-in-the-sky predictions or dreams of untold wealth for all who buy now [having said that, I thoroughly enjoy the musings of The Factaa, Grunyans & co].

Unlike some, I am very grateful for the criticism which has appeared on this forum recently. It is beneficial for us all to learn and understand an alternative viewpoint, and I have certainly taken these concerns onboard. I think that many valid points have been raised, and I thank all for their time and contributions.

This brings me to my questions and perhaps a starting point for our debate going forward.

1. Groote Resources' manganese resource will be established through its extensive drilling program which is scheduled to begin mid-year. Assuming all environmental aspects of this project have been dealt with (and I am confident they have), how will Groote Resources fund the setup of a commercial mining operation? I estimate $800M - $1,000M would be required to do this. Where will this come from? Cap raising? Mass dilution? Joint Venture? Takeover? Which one, if any? Then what effect will this have on the SP?

2. Preliminary evidence indicates that GOT have a manganese resource, some suggesting up to 50Mt. Based on the current price of manganese and the cost per tonne of extracting the resource (refer to GEMCO's ratios), where does this leave the share price?

One must apply a cost factor for dredged ore (checked against other similar mining projects around the world), even then it's my understanding that this project will be unique. The intrinsic share price can then be calculated with an expected tonnage of ore mined per annum assumed to derive an annual profit, and discounted against a very conservative price earnings multiple of 10.

I would like to hear everyone's thoughts on the above.

I have personally calculated a 6-month price target of approximately $2.50, which may or may not be reached - the market will do what the market wants to do! This is by no means what I think the share price will hit, but rather simply what the numbers tell me.

My 2-year price target is actually the same ($2.50), yes that's right, $2.50. Unless it can be demonstrated to me how Groote Resources can commercially mine this resource, then I unfortunately can't see the price rising any further than the implied resource, discounted into the future.

Against, I'm hoping for a healthy debate on the above mentioned issues, and would love to hear some constructive criticism.