Ann: Diggers & Dealers Presentation, page-18

Thanks for your reply Seth, and I'm a (very) simple punter, but always learning (or at least trying to - at my age).

So with MC of approx $90m, 2/3rds of that is $60m - add the two and you would see a reasonable NPV as about $150m - is my understanding correct?

I've been looking at DFS comparisons with some of my other gold companies (like EMR), just to try and get a gauge, given some of the comments here.

For example, EMR released their DFS using a pre-tax NPV of (5%), whereas EAR have used 8%, so it's a little difficult to compare.

EMR have a market cap of 65m and their pre-tax NPV (5%) was $298m - which is 4.5 times their market cap. I'm presuming this is a good result compared to EAR, which is only 1.6 times their market cap. I expect EMR's figure would come down though if they used 8%.

I've looked at some others for comparison, and I'm getting a rough sense that something like 2.5 times the market cap is often considerable reasonable for pre-tax NPV (8%), which does leave EAR a bit short, and hence may explain some of the sell down. Some people/funds may have been expecting the pre-tax NPV (8%) for EAR to be above $225m.

Gw