NPV of Coolgardie at $1700/ounce is $20.7m. At the star of the quarter there was $1.3m in the bank with planned outgoing of $0.7m - so at best you have a valuation of $22m for Coolgardie and cash. Without significant funding (more than Coolgardie would provide) then Mt Bundy cannot be developed.
In essence the current market cap reflects Coolgardie and cash - with any premium being offered accounting for Mt Bundy - which in effect has limited value at this point in time. I'd be expecting a 30-60% premium if it is in fact a takeover. Potential is a dirty word and simply reflects what is yet to be done/funded.
Ann: Trading Halt, page-52
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