stonebridge 86c target, page-6

I do have it here, but theres no link to it.

You could ask Auzex for it - they sent it out to anyone registered on their site.

They will most likely post it on there in due course.

This price target of theirs is heavily discounted.
Some copied juicy tidbits...


VALUATION
We value AZX using a risk adjusted discounted cash flow method. Our $0.86/share price
target includes a DCF valuation for the Bullabulling Gold Project and corporate overheads in
combination with a sum of the remaining parts being cash, options and other projects on a
fully diluted basis.
Our DCF valuation of Bullabulling has been risk adjusted in two stages:
? Inferred Resource: 30% risk adjustment, plus
? Ownership 50%: 20% risk adjustment
Due to the current resource being at an Inferred level and therefore requiring upgrading
before a feasibility study can be completed we have discounted the project valuation by 30%.
Upon an upgrade of the resource to a material Measured and Indicated Resource (>1 million
ounces) we would reduce the discount.
We have discounted the Bullabulling valuation a further 20% due to AZX not having a
controlling interest in the project. The market will generally discount a company for not having
a majority/controlling stake in its key project and we have done so accordingly. We believe
that should AZX move to a majority share of Bullabulling or AZX and GGG merge to result in
one entity owning 100% than this would be value accretive for AZX.
Our headline DCF valuation for 100% of Bullabulling at an 8% discount rate is A$263 million
based on a nominal US$1250/oz gold price and USD exchange rate $0.92. Our risk weighted
attributable valuation for Bullabulling is A$74 million or $0.82 per share fully diluted.

Exploration Upside
We believe that the planned infill, extensional and deeper drilling is likely to add significantly
to the current resource. We estimate between 400,000 and 800,000 ounces at a 0.7g/t cut off
grade will be added.

DEVELOPMENT
With a JORC Inferred Resource of 2 million ounces (at a cut off of 0.7g/t Au) the Bullabulling
project has significant potential, especially with the A$ gold price above A$1300 per ounce.
Yet an Inferred Resource cannot be converted into a Reserve through a feasibility study. The
Resource needs to be upgraded through additional infill drilling which will give the consultants
and the company the confidence to upgrade the resource. A large portion of the current
resource will be upgrade through a small amount of drilling but until then any modeling needs
to be significant risk weighted.
We have conceptually modeled a development scenario based on the following:
? An additional 10Mt @ 1.5g/t for 500,000oz added to the resource (<150m depth),
? A 75% conversion to mining pit inventory with dilution and mining loss combined of
10% due to the large bulk tonnage nature of the project resulting in a grade of 1.3g/t,
? Construction through 2012 with first production in Q1 2013,
? A strip ratio of 4:1 and a mill throughput of 4mtpa with recovery of 90%, and
? Cash costs of A$700 ? A$750 per ounce.
Due accessibility of key infrastructure including power and water as well as not having to
operate a fly in fly out roster and the size of mill the cost structure will be relatively competitive
to most gold mines in the Eastern Goldfields.