This is my first posting on HotCopper so I hope it is of some...

This is my first posting on HotCopper so I hope it is of some interest.

I and number of my colleagues personally like the project diversification & small capex required, lack of market knowledge/interest in mineral sands and realistic potential for sales revenue to be a multiple of market cap by 2008/09.

We've put together a rudimentary valuation model and used a relatively aggressive discount factor of 15% and made some conservative guesses (but based on some input from Peter Gazzard*) to produce a ball-park as follows:

Kalimantan (Indonesia))
NPV (before interest & tax) - $12.2M
Cps - 0.11

Keysbrook (WA)
NPV (before interest & tax) - $20.2M
Cps - 0.18

Hart Ranges (NT)*
NPV (before interest & tax) - $31.6M
Cps 0.28

Sum of the parts
Est before tax $64.03M
Est after tax $47.35M

Valuation
Cps (undiluted) $0.41
Cps (diluted) $0.38

I go through this process to reassure myself that the risk justifies the potential future return. It certainly appears to do that as the valuation is well in excess of the current share price.

The Board was scheduled to meet in the last week of November 2006 to discuss the BFS for Harts Range. Although I don't yet know the actual date for release I see it being the short term trigger for the share price.

* Peter Gazzard email 23 Nov 2006 "The price for Garnet and Garnetblende varys depending on where it is sold and the cost of transport to that market. On average we expect to achieve a mine gate sales price of approximately $AUD170-200 per tonne for Garnet and $AUD40-50 for Garnetblende."