why would we use pe of 10 for eqn., page-5

You shouldn't pay too much attention to PE ratios in mining stocks as things can change literally overnight ( check of what the WA gas crisis did to Minara - MRE) and the current tax issue with EQN.

My view is that this is a PE of 6 stock which reflects the one mine in Africa risk as opposed to the likes of BHP which sits on a traditional PE of 12 ish. Its is VERY company specific as the risks within regions and mines vary enormously. I would suggest the LGL is as closely related to EQN as AMP is to Lehmann Brothers in the US in that they are both in financial services.

What is attractive EQN is that the oreboby is open cut open at depth and hopefully has access to relatively cheap hydro power which will become a major factor for mining in the near future. The downside is government instability and demand for copper.

An internal rate of return of say 15-20% means that any $$$ more than 5-6 years out are almost worthless.

Cheers