Ann: Appendix 3B, page-22

Hi all.
Given our mc of ~$50m and current valuation of ~30-45 cents, if we have some good news over the next year which I have no doubt of, then I am certain of seeing a sp a lot higher than it is now, ( but that is dependant on market sanity of which there is sometimes, very little ).
We are still in the speculative exploration stage.
Remember this pic?


I have taken an excerpt from the post @Sharpey did just for an example.

"In a few years, I think this company will be producing 100,000 oz's per annum, making a profit of $800/oz.
After tax, that will be $560m of annual profit.
Give that a 10x multiple (reasonable for a mining company) and we're talking about a $560m company."


I would be extremely happy to see a profit of $800/ oz and I won't argue that point.
Our Conglomerate could even give better but if we assume $500/0z which could give a profit of $350m.
We have not considered ongoing exploration costs as well as many other expenses we will have.

Now let's return to the metrics.
At a sp of 45c we have a mc of ~$187M
Why is it not possible to borrow 100% if we only need $100m with an annual potential profit of $350m.
That is a payback period of 3.5 months.
That is an IRR of 350%
If they were the metrics, who would not lend the funds based on that?

All speculation and dreaming atm but even if you halve the annual profit of $350m, the metrics are still attractive and a little more realistic.
More good news from our drilling and Conglomerate will tell the tales.
Without giving too much away, ( as I am hoping @Shamer will post the juicy stuff ), there are currently 4 rigs still drilling which will be reduced but drilling will continue right through the wet season.
Watch out for results at Mallina, Toweranna and eventually Camel.
Oh and of course, our Conglomerate.
There is plenty of catalyst coming for sp appreciation prior to needing funds for development.
Kind regards, Wack.