Agree. It is not about being able to do a spreadsheet (and Id...

Agree. It is not about being able to do a spreadsheet (and Id seriously avoid a back-of-a-fag-packet-calc, that is for experts who have an intuitive sense). House analyst models are best, it is the number in them that you need to take a view on. To do this consistently and effectively. you are better off working in the field to make the most sense of the analyst's valuation report. Then challenge the assumptions & forecasts and only then take a view on adjusting the unit NPV from there. Understanding and having the full complement of value drivers is key. To me doing this type of analysis yourself without a degree in the field. an MBA and 2 years in M,A&D (take it from one who has) is like chucking in a great corporate job to become an Amway sales rep..."could well work, some downside risk though".

On the company itself, a couple of points of interest per ERM:

* used to have a arrangement with EVN, EVN got out because the NT gold play was too small & hence high AISC and EVN prides itself on being low AISC (hence their Divestment to RMS...who is now trying to buy EXU....oopps);
* such a small. rich gold play is fine for a A$25m market cap junior;.
* they do currently process ore, but it is micro scale, though the antiquated processing plant, but it only provides a dribble of cash, but it does postpone the day that you'' be diluted via a new ER;
* the new JV provisions are set to provide some decent processing capacity, when it starts in 1Q 2019?, to pay for the exploration in NSW - looks highly prospective, but a fair way off;
* more broadly. the whole base metals sector has been "corrected" and won't probably recover until ~1 Q19, so a fall from 10 cps to 7cps is not unusually...as the blue sky has temporarily become overcast; &
* as importantly to sentiment, CEO Bob need to calm down a little and restore his "release" credibility, and endevour to avoid the use of the word "spectacular".

Disclosure: I am a consulting analysis for the WA resource industry and a material shareholder of ERM since mid-2015.