EVN's new gold operations recently purchased from La Mancha include the Frogs Leg and White Foil mines. These are expected to produce 130-160koz per annum at a AISC 0f A$960-$1030.
White Foil is a low grade open pit producing about 40koz yr at 1.6g/t.
Frogs leg is an underground mine opened in 2008 producing approx 90kozpa at about 6.5g/t.
The EKJV is right next door to these mines producing 200+koz per year at an AISC around A$750poz with grades that are above 10g/t.
Reserves and reources are a little different, but Pegasus is brand new and the EKJV has better grades, higher production and a lower AISC. The $420M paid by EVN for their assets would appear to be a reasonable base line for valuation purposes.
Therefore I think it would be very reasonable to apply a $200M valuation to the 49% interest belonging to TBR and RND. Add to this the 150kozs the two companies possess valued at $230M, the total would come to $430M.
TBR owns 44% of RND and RND owns 26% of TBR. Removing this cross ownership provides a recalculated current market cap of just $200M.
