back to basics

Hey all
At this point in time, when we're all thinking about whether to chip in some more of our hard earned, is it worth looking at the fundamentals of the operation and probably the reason why many of us invested in the first place?

I've gone back over some old reports and found in 2010, when they had their previous capital raising, they had a probable 1.6M ounces. In 2011 it had increased to 2.3M. Now, they are producing and still have 3 Million ounces of gold. A quarter of this is measured. So if you just count the measured, thats about 1.2 billion dollars worth of gold. Include the rest,and you're looking at another 3.5 billion. (Plus more to be discovered??)

So even if they spend 3 billion in digging it up (they are currently spending $100 mill a year), thats still gives almost 2 billion in profit. On a per share basis, using the number of shares after the raising, that is still $3.30 EPS. Not bad for a 20 cent investment and a bit of time.

Its a risk, but hey, what gold mine isn't? Anything can happen between then and now, both positive and negative. Whats to say we will have the same board in 2 years time, or not be taken over. All the potential positives are not being factored into the share price, and neither are their potential earnings.

Good luck with whatever you decide to do.

So even if the need another capital raising a year or 2 down the track (unlikely as they will be ramping up production soon), I'll be putting in for that as well.

Are there any other gold miners with as good a risk/return pay off? If so, please let me know.