yes @stumpytrunks. I just did a simple approach. Assumed final...

yes @stumpytrunks.

I just did a simple approach.

Assumed final production of gold reclaimed of 2g/t x throughput x margin

2 x 1,400,000 x $500 /31.14 gpt = $45m p.a. probably the best likely.

They probably have enough tax losses the last few years so I ignored tax.

Either assume an NPV factor of 6 or a P/E of six and the result from here  looks like $1.50/sh

The 2g/t number assumes that all the operating costs etc have been paid and is the actual revenue producing gold. if the clear and free is 1g/t than obviously 75c is the best.

I have found that these simplistic type calcs, if they pass a reasonableness test are close enough to know where things lie, but I look forward to your own view.

Bsically, the time passed is a pain but I think they are determined not to waste their own money and do need to get some dollars in the door, but are being patient and thorough about it and want a long sustainable production.

I was very harsh when they took over, given other Chinese experience when they are major equity holders, but Shandong seems a cut above the others.
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