WAF valuation, page-12

"They probably would havebeen better off building a mill that was 1/5th the size and just process 300ktof UG high grade for 5 years"

Yes it's like we have thrown the baby out with the bath water with this massive raising to build a high CapEx processing plant that is likely to only give benefit to the neighbours when they buy us out cheap and consolidate the district scale low grade dirt. Who are we building this project for?? That's what I've been saying.

M1 will probably go on for 10 plus years and would have been a great money maker for a smaller group of existing and select new shareholders on a smaller scale. No point crying over split milk now though because we can't rewind this nightmare.

This guys spreadsheet looks the goods but he seems to be using it for nefarious purposes only pointing out the downside risks. New poster (new thread) on HC as well........hmmmm? How are those dark forces looking now? The back end of the project will also be filled with high grade ore, it's just not economical to prove it all up now by drilling from surface. It's highly unlikely that the back end of the project will generate negative cash flows as calculated in this spreadsheet IMO. The FS processing rates will also be pretty accurate for the reasons other posters have explained IMO.

He does have a point in regard to the low discount rate used. Any conseravtive NPV analysis would adopt a much higher discount rate considering the risk and the cost of lending for these projects, although the loan pay back rate is going to be pretty quick so part of this risk is removed. The price of gold is heading back to the US$1,300 used in the Sanbrado FS and will likely trade higher IMO over the life of the project. Gold's time in the sun is coming. Pity we are not seeing any benefit in the share price and probably won't see the long lasting benefit of the district scale resource consolidation which will happen around this project. The sooner this pain ends the better. How much lower do they want to drive this before they pounce? Esh