wilson's assumptions - are they valid?, page-14

Thanks O-Q for the "peek beneath the sheet" of what the professionals do at analysing resource value.

I too am somewhat surprised at the low discount rate and would have thought that 12% to 15% should be used to assess NPV given the risk involved.

I accept that we have become de-risked by virtue of our progress to producer status but there are still many uncertainties in a mining venture, not the least of which is the actual gradings matching the suggested JORC specs.

I'll be interested in what you guys come up with when you find time to upgrade your models.

My simplified approach works on the value of the individual parts and by all accounts we have saved signifciant sums of money with the plant which we purchased in WA.

Let's hope we can get a decent extension to the LOM in the early part of next year so that we can keep the beast fed for up to 20 years! Mind you, by that stage, it'll just be soft veggies and colour and movement for old Porty!