Ann: Woodlark Project Update , page-2

The market has really lost faith in this one and is saying 'show me the money'.

Let's be conservative and assume starting capex of $180m.
Financing takes care of 50% (although could be as high as 70%): $90m.
PNG Government takes 30% stake: $54m.
Leaves a total for KGD to kick in $36m.

But we know that for PNG to take its 30% interest means they will have to reimburse KGD for sunk costs c.$30m.

If these boxes are ticked the KGD equity raising will be minimal.

And all this for a mkt cap of $18m - looks like a cheap long dated call option at these prices if they can deliver.

At least Japanese QE should keep the gold price nice and high while we wait.