Ann: Drill Update Reef Extensions Confirmed McNally's RemainsOpen, page-165

Making your own rules up again zero? No use whinging about what a company has spent over the years to get to where it is. The current decision is "is it worth buying AUL with a current market cap at <$14M" One of the considerations is regarding whether AUL will be profitable or not... ie will AUL make a profit, (sales - costs to produce for a defined period), mining from today and is that ongoing profit worth buying part of the current $14M market cap. The only thing to gain from looking at costs to get where it is now (pre production costs) is an understanding of tax implications, which will add to the profitability of the company from today onwards. It can't be simpler zero - is a <$14M market cap worth the Qtrly balance of 'money in vs money out'. Obviously that question resets itself every time the share price changes as the market cap will move (as will it with a cap raising). Considering we are only just starting to produce, it will be a few months before we have a reasonable picture of what to expect profit wise. We are all aware that the initial production is at a reduced annualised rate hence a period of time still before the full profitability is more predictable.

PS - obviously it is more complicated that just a PE ratio, but when leaning more towards producer status, it come more into play. The other elephant in the room is assets - inground future earning potential. AUL definitely have a lot of ground that has a history of giving results. The trick will be unlocking those future profits by using the profits from current production - and hopefully not requiring further market cap dilution.