market cap, page-4

"eps = -1.8c. no p/e."

AND is an exploration company so its not generating revenue, like every other gold explorer on the asx.


"i know all the stories of potential, but the reallity is, nothing is being produced and no money earned. set up requires large amounts of capital."


AND raised C$90M recently. MC is about A$1.2B.

Capex for current 2000tpd operation is US$180M, would prefer if the 4000tpd operation is back on the table next year which would cost US$280M est.

"now you tell me why the market cap is justified."

MC is about A$1.2B.

On first look AND does look expensive and overvalued for the current ~3Moz resource defined compared to its asx listed peers. 5 drill rigs are currently working to increase this resource, the Bajo Negro discovery is being included in the BFS with the main Eureka deposit. A further discovery at San Marcos has since been made.

IMO AND lease is shaping up to be a district play that could turn out to be +10Moz field, the recent new high grade discoveries are starting to highlight this. A few people in MIM and Xstrata, not to mention the bunnnies at KCN will probably not want to be reminded that AND is now A$B company.

So back to valuation;

Firstly if you line up all the gold miners listed on the asx and their projects in terms of production youll have a small number of mines with production plus 250kozpa. These are all owned by major companies such as LGL, NCM and AGG. And AND....


Secondly if you line up all the gold miners listed on the asx and their projects in terms of opex youll find the average opex is around US$500-600/oz. AND is less than US$200/oz. If you screen out the producers less than 250koz pa and the majors youll again be left with AND....


Thirdly if you line up all the gold miners listed on the asx and their projects in terms of grade youll find the average grade is around 2-3g/t. AND is + 8g/t AuEq depending on the silver price. If you screen out the producers less than 250koz pa and the majors youll again be left with AND...


So AND has a large production base, low cost and high grades compared to all other non major gold minors on the asx. ie in the lowest quartile in the industry. Together with CNT, AND is only true mid tier gold stock on the asx.


Hence the MC, the market is paying for both size and grade which is king, and further exploration potential, simply AND's project is in another league compared to the other companies with planned 50-150kozpa projects. This always makes AND look like an unfair dot on simplied valuation graphs used by other companies in presentations.


Secondly, im not confident AND will produce a gram of gold. KCN has already tried....AND together with CNT are the only companies on the asx with potential production stats that would show up on the radars of major gold companies.


"ps check out bmn's week at the office."


I did, see post tonight, not a great week for BMN.


AND also has a PFS like BMN, but AND's grade, opex and IRR are all in the lowest quartile compared to current gold operations, not like BMN (for Uranium).