1 A Hands On Modelling Start Here Overview 2013-10-06

1a.
Hands On Modelling
Start here Overview

www.economicevaluation.com.au
peter@economicevaluation.com.au
1
Spend only a few seconds on most slides.
2
Level 3: Decision making
give a quick
overview of
Level 2: Evaluating the business/project
Level 1: Hands-on economic modelling
3
Modelling is as easy as A B C
A.
B.
C.
Three levels of evaluation
i. Decision Making
ii. Evaluating
iii. Hands-on modelling
Three Layouts:
i. A simple assessment
ii. Comparing alternatives
iii. One long detailed complex model
Hands-on modelling practices
i.
ii.
iii.
iv.
Six principles
Four cashstreams
Worked examples
What people want!

.

Selecting the alternative for the project/activity that best
fits the total business; by using the results gleaned from
the evaluation work in Level 2

Selecting the alternative for the project/activity that best
fits the total business; by using the results gleaned from
the evaluation work in Level 2
This is the
most important
Level 2: Evaluating the the business/project

Using hands-on modelling to understand values,
drivers, ranges, high & low possibilities, alternatives,
options, flexibility, industry cost curve much more
than NPV
Level 2: Evaluating the the business/project

Using hands-on modelling to understand values,
drivers, ranges, high & low possibilities, alternatives,
options, flexibility, industry cost curve much more
than NPV
Level 1:
This is the most

challenging and
Hands-on economic
productive modelling

Using rigorous modelling practices, to create an easy-tounderstand, transparent, robust and audited working tool
10

Using rigorous modelling practices, to create an easy-tounderstand, transparent, robust and audited working tool
NPV, IRR & payback are just a few of the outcomes
Your model may become long and detailed but must
always remain easy for others to follow.
.
11

Using rigorous modelling practices to create an easy-tounderstand, transparent, robust and audited working tool
NPV, IRR & payback
Thisare
is just
the a few of the outcomes
Your model may

become long and detailed but
workhorse
must always remain easy for others to follow.
.
12
Your task is to develop a model that anyone

around you can understand rapidly.
It may become long detailed and complex but it must remain easy for others to follow.
13

around you can understand rapidly .
Others must be able to confidently play with their copy.

That is how you measure your success
14

around you can rapidly understand.
If your model is sophisticated and smart so that you

and only a couple of others can easily use it, then it is
1990s era, poor quality product!
15
i. A simple assessment
ii. Comparing alternatives
iii. One long, detailed, complex evaluation
16
such as
Day-to-day activities
Preliminary assessments
Concept studies
the workbook layout might look like

17
Existing case
carbon in pulp technology
NPV - Existing Case

IRR - Existing Case
Purpose
This 'Worked Exam ple' illustrates the econom ic evaluation m odelling practices recom m ended by AusIMM
It com pares a gold m ine using existing com m on technology with a new technology - at concept level
Warnings
This exam ple has not been audited and should not be used without a thorough check.
Self audit
existing case
new tech case
taxes
external peer
P Card
D M artin
G Darwin
G Wise
C Casey
Yet to be completed
Yet to be completed
Yet to be completed
Yet to be completed
Yet to be completed
9.1%
10
0
10
0
-10
Existing Case - NPV
30
20
20
A$M
Audits
2,007,342
A$
Existing Case - Four Cash Streams
40
30
A$ M
Worked Example - MetPlant 2011

Contact
Peter Card 04 07 508 924
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
-20
2011
-10
2012
2013
2014
2015
2016
2017
2018
2019
2020
-20
-30
-40
-30
-50
-40 2: Capital Costs - Existing Case

Cashstream
Cashflow Deficit
Cashflow if positive
Cashstream 3: Operating Costs - Existing Case
-60
Discounted Cashflow - Existing Case
Cashstream 4: Taxes - Existing Case
Cumulative NPV - Existing Case
Simplified to four cash streams
67.4
300,000
200,000
100,000
0
2011
2012
2013
2014
2015
2016
2017
Ore Production
2018
2019
60Existing
Case - Sales, Price, Margin
1,200
1,000
40
800
$/ounce
6
5
4
3
2
1
0
500,000
400,000
Gold Ounces (000's)
Existing Case - Mining
600,000
Au Grams/Tonne
Accounting can be derived from these.
Understanding the colour coding

13 Aug2011 B White, "Sales Plan for Operations to 2025"
67.4
Every item of input data is exposed in a cell using blue font on a blue background
It has its source, date and person in blue font in the row immediately above. (Not as a hidden cell note)
67.4
202.2
Any item that is dubious or needing verification is in pink font
Every item which is referenced across from another worksheet is in green font on green background.
recovery
% silver
36%
36%
The complete row is referenced across including its title in column A as a check that the correct data is being referenced.
If a referenced cell is in Column B in the source worksheet then it appears in the same column (B) in this worksheet. (this greatly reduces errors)
Therefore if 2013 is in column K in one worksheet then it is in column K in every other worksheet
134.8
Every algorithm must use cells only from this worksheet. (It does not reference data in another worksheet, nor contain hidden fresh data)
134.8
Computational algorithms should not change across a row. If there is an exception it should be highlighted with a dark border
Tonnes Ore or Ounces Gold
Each evaluation is simplified into four streams: Rev enue, Operating Costs, Capital Costs and Taxes.
600
20
400
200
0
2011
2020
2012
2013
2014
Gold sold
Head grade
2015
2016
2017
Gold price Forecast
2018
2019
2020
Pretax margin/oz
Some people use italics for nominal terms data and vertical font for real terms data
Existing Case - Opex
20,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
15,000,000
10,000,000
A$
A$
5,000,000
0
2011
2012
2013
2014
mining cost
Life of Mine
2015
2016
2017
2018
processing cost
units
Total
2019
Existing Case - Capex
2011
2020
2011
2012
2013
2014
2015
2016
2017
Initial Capital Costs
fixed costs
2012
2018
2019
2020
Ongoing Capital Costs
2013
2014
2015
2016
2017
2018
2019
2020
500,000
3.1
49,839
83%
41,367
500,000
3.8
61,093
83%
50,707
500,000
2.9
46,624
83%
38,698
350,000
2.8
31,511
83%
26,154
Cashstream 1: Production and Revenue

Production
10 Aug 11 T Benson mine schedule "Mine Plan 12 June 11"
Ore Production
tonnes
Head grade
grams/tonne
Contained gold mined
ounces
Processing Recovery
% of contained gold
Gold produced
ounces
2,150,000
3.1
213,183
175,736
300,000
2.5
24,116
78%
18,810
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,387
40,065
3
2,925
50,169
3
2,233
39,391
3
1,509
26,878
3
0
1,509
3
0
0
1,000
0
1,000
0
1,000
0
1,000
17,725,080
1,000
40,065,236
1,000
50,168,501
1,000
39,390,613
1,000
26,877,999
1,000
1,508,904
1,000
0
30
0
30
0
30
1,456,856
30
3,293,033
30
4,123,438
30
3,237,585
30
2,209,151
30
0
30
0
16,268,224
38,229,059
49,338,096
40,276,467
27,906,433
3,718,055
Sales
23 Aug 11 J Gomachie: "Sales Plan: July 2011"
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
175,736
Revenue
23 Aug 10 ABC Company Forecast of gold price
Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
1,000
175,736,334
23 Aug 11 J Gomachie: " Sales Plan: July 2011"

Debtors
days
Debtors - Closing
A$ Real
Cashstream 1: Revenue - ExistingA$

Case
Real
175,736,334
Cashstream 2: Capital Costs

10 Aug 10 G Dawson "Capital Cost Estimate: Indicative Estimates Version G"
A$ Real
58,000,000
A$ Real
10,000,000
3,000,000
30,000,000
25,000,000
Cashstream 2: Capital Costs - Existing

A$ Real
Case
3,000,000
30,000,000
25,000,000
68,000,000
3,000,000
4,000,000
2,000,000
1,000,000
3,000,000
4,000,000
2,000,000
1,000,000
10%
6,858,601
23%
15,502,975
29%
19,412,366
22%
15,241,935
15%
10,400,262
1%
583,860
0%
0
Tax deductions for Capital Expenditure

3 May 11 E Hermi Assume all capital is deducted in proportion to the gold sold over the life of mine.
Tax Deduction for Capital Expenditure
% of contained gold
Tax deduction for capital expenditure
68,000,000
Cashstream 3: Operating Costs

5 May 11 G Dawson "Operating Cost Estimate: Indicative Estimates." There is no waste to be mined.
mining cost per tonne
A$ Real/ tonne ore
31
mining cost
A$ Real
13,300,000
processing cost per tonne
A$ Real/ tonne ore
100
processing cost
A$ Real
43,000,000
fixed costs
A$ Real
15,000,000
Cashstream 3: Operating Costs - Existing

A$ RealCase
cost per ounce
71,300,000
A$/ounce Real
5
1,500,000
20
6,000,000
3,000,000
5
2,500,000
20
10,000,000
3,000,000
6
3,000,000
20
10,000,000
3,000,000
7
3,500,000
20
10,000,000
3,000,000
8
2,800,000
20
7,000,000
3,000,000
10,500,000
15,500,000
16,000,000
16,500,000
12,800,000
558
375
316
426
489
Cashstream 4: Taxes
Government Royaties
2 June 11 R Torply: SA State Royalty is 1% of revenue paid monthly
State Royalty
% of revenue
State Royalty
A$ Real
1,757,363
1%
0
1%
0
1%
0
1%
177,251
1%
400,652
1%
501,685
1%
393,906
1%
268,780
1%
15,089
1%
0
40,065,236
50,168,501
39,390,613
26,877,999
1,508,904
15,500,000
15,502,975
400,652
8,661,608
16,000,000
19,412,366
501,685
14,254,450
16,500,000
15,241,935
393,906
7,254,773
12,800,000
10,400,262
268,780
3,408,957
0
583,860
15,089
909,955
0
0
0
0
30%
2,598,483
2,598,483
30%
4,276,335
4,276,335
30%
2,176,432
2,176,432
30%
1,022,687
1,022,687
30%
272,986
272,986
30%
0
0
Company Income Tax

2 June 11 R Torply: Company Income tax rate is 30%. The cash payment averages mid year. Assume operating cost cashstream approximates the cost of goods sold.
Gold Revenue
175,736,334
0
0
0
17,725,080
less
71,300,000
0
0
0
10,500,000
68,000,000
0
0
0
6,858,601
State Royalty
1,757,363
0
0
0
177,251
Assessable Income
34,678,971
0
0
0
189,228
Company Income Tax Rate
Income Tax
Income tax payment
% of assessable income
A$ Real
10,403,691
10,403,691
30%
0
0
30%
0
0
30%
0
0
30%
56,768
56,768
12,161,055
234,019
2,999,135
4,778,020
2,570,338
1,291,467
288,075
175,736,334
68,000,000
71,300,000
12,161,055
0
3,000,000
0
0
0
30,000,000
0
0
0
25,000,000
0
0
16,268,224
3,000,000
10,500,000
234,019
38,229,059
4,000,000
15,500,000
2,999,135
49,338,096
2,000,000
16,000,000
4,778,020
40,276,467
1,000,000
16,500,000
2,570,338
27,906,433
0
12,800,000
1,291,467
3,718,055
0
0
288,075
0
0
0
0
24,275,280
-3,000,000
-30,000,000
-25,000,000
2,534,205
15,729,924
26,560,076
20,206,129
13,814,966
3,429,979
Cashflow and NPV

Cashlows
Cashstream 1: Revenue - Existing Case
A$ Real
Cashstream 2: Capital Costs - Existing Case A$ Real
A$ Real
A$ Real
Cashflow - Existing Case
A$ Real
IRR - Existing Case
9.1%
Discounting
17 July 11 F Green email: discount rate for investment in gold is 8% Real. The base date is 1 July 2011
Discount Rate
% Real
8%
Discount Factor
0.96
Intro & Audit

worksheet

A$ Real
A$
NPV - Existing Case
A$
2,007,342
-2,886,751
-2,886,751
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
8%
0.48
-26,729,179
-29,615,930
-20,624,367
-50,240,297
1,935,792
-48,304,505
11,125,505
-37,179,000
17,393,968
-19,785,033
12,252,613
-7,532,420
7,756,605
224,185
1,783,157
2,007,342
0
2,007,342
2,007,342
Workings in one worksheet
18
Existing case
Purpose
This 'Worked Exam ple' illustrates the econom ic evaluation m odelling practices recom m ended by AusIMM
It com pares a gold m ine using existing com m on technology with a new technology - at concept level
Warnings
This exam ple has not been audited and should not be used without a thorough check.
Self audit
existing case
new tech case
taxes
external peer
P Card
D M artin
G Darwin
G Wise
C Casey
Yet to be completed
Yet to be completed
Yet to be completed
Yet to be completed
Yet to be completed
9.1%
10
0
10
0
-10
Existing Case - NPV
30
20
20
A$M
Audits
2,007,342
A$
40
30
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
-20
2011
-10
2012
2013
2014
2015
2016
2017
2018
2019
2020
-20
-30
-40
-30
Summary
of results
-50

Cashstream
Cashflow Deficit
-60
67.4
6
5
4
3
2
1
0
500,000
400,000
300,000
200,000
100,000
0
2011
2012
2013
2014
2015
2016
2017
Ore Production
2018
2019
60Existing
Case - Sales, Price, Margin
1,200
1,000
40
800
$/ounce
600,000
Gold Ounces (000's)

67.4
67.4
202.2
Any item that is dubious or needing verification is in pink font
recovery
% silver
36%
36%
The complete row is referenced across including its title in column A as a check that the correct data is being referenced.
134.8
134.8
Au Grams/Tonne
Each evaluation is simplified into four streams: Rev enue, Operating Costs, Capital Costs and Taxes.
what
who
how
audits
NPV - Existing Case

IRR - Existing Case
A$ M
Worked Example - MetPlant 2011

Contact
Peter Card 04 07 508 924
600
20
400
200
0
2011
2020
2012
2013
2014
Gold sold
Head grade
2015
2016
2017
Gold price Forecast
2018
2019
2020
Pretax margin/oz
20,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
15,000,000
10,000,000
A$
A$
5,000,000
0
2011
2012
2013
2014
mining cost
Life of Mine
2015
2016
2017
2018
processing cost
units
Total
2019
2011
2020
2011
2012
2013
2014
2015
2016
2017
fixed costs
2012
2018
2019
2020
2013
2014
2015
2016
2017
2018
2019
2020
500,000
3.1
49,839
83%
41,367
500,000
3.8
61,093
83%
50,707
500,000
2.9
46,624
83%
38,698
350,000
2.8
31,511
83%
26,154

Production
Ore Production
tonnes
Head grade
grams/tonne
ounces
Processing Recovery
% of contained gold
Gold produced
ounces
2,150,000
3.1
213,183
175,736
300,000
2.5
24,116
78%
18,810
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,387
40,065
3
2,925
50,169
3
2,233
39,391
3
1,509
26,878
3
0
1,509
3
0
0
1,000
0
1,000
0
1,000
0
1,000
17,725,080
1,000
40,065,236
1,000
50,168,501
1,000
39,390,613
1,000
26,877,999
1,000
1,508,904
1,000
0
30
0
30
0
30
1,456,856
30
3,293,033
30
4,123,438
30
3,237,585
30
2,209,151
30
0
30
0
16,268,224
38,229,059
49,338,096
40,276,467
27,906,433
3,718,055
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
175,736
Revenue
Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
1,000
175,736,334

Debtors
days
Debtors - Closing
A$ Real
Cashstream 1: Revenue - ExistingA$

Case
Real
175,736,334

A$ Real
58,000,000
A$ Real
10,000,000
3,000,000
30,000,000
25,000,000

A$ Real
Case
3,000,000
30,000,000
25,000,000
68,000,000
4,000,000
2,000,000
1,000,000
4,000,000
2,000,000
1,000,000
10%
6,858,601
23%
15,502,975
29%
19,412,366
22%
15,241,935
15%
10,400,262
1%
583,860
0%
0

% of contained gold
68,000,000

A$ Real/ tonne ore
31
mining cost
A$ Real
13,300,000
A$ Real/ tonne ore
100
processing cost
A$ Real
43,000,000
fixed costs
A$ Real
15,000,000

A$ RealCase
cost per ounce
71,300,000
A$/ounce Real
5
1,500,000
20
6,000,000
3,000,000
5
2,500,000
20
10,000,000
3,000,000
6
3,000,000
20
10,000,000
3,000,000
7
3,500,000
20
10,000,000
3,000,000
8
2,800,000
20
7,000,000
3,000,000
10,500,000
15,500,000
16,000,000
16,500,000
12,800,000
558
375
316
426
489
Cashstream 4: Taxes
Government Royaties
State Royalty
% of revenue
State Royalty
A$ Real
1,757,363
1%
0
1%
0
1%
0
inputs,
computations,
outputs,
results
3,000,000
3,000,000
1%
177,251
1%
400,652
1%
501,685
1%
393,906
1%
268,780
1%
15,089
1%
0
40,065,236
50,168,501
39,390,613
26,877,999
1,508,904
15,500,000
15,502,975
400,652
8,661,608
16,000,000
19,412,366
501,685
14,254,450
16,500,000
15,241,935
393,906
7,254,773
12,800,000
10,400,262
268,780
3,408,957
0
583,860
15,089
909,955
0
0
0
0
30%
2,598,483
2,598,483
30%
4,276,335
4,276,335
30%
2,176,432
2,176,432
30%
1,022,687
1,022,687
30%
272,986
272,986
30%
0
0
Company Income Tax

Gold Revenue
175,736,334
0
0
0
17,725,080
less
71,300,000
0
0
0
10,500,000
68,000,000
0
0
0
6,858,601
State Royalty
1,757,363
0
0
0
177,251
Assessable Income
34,678,971
0
0
0
189,228
Income Tax
Income tax payment
A$ Real
10,403,691
10,403,691
30%
0
0
30%
0
0
30%
0
0
30%
56,768
56,768
12,161,055
234,019
2,999,135
4,778,020
2,570,338
1,291,467
288,075
175,736,334
68,000,000
71,300,000
12,161,055
0
3,000,000
0
0
0
30,000,000
0
0
0
25,000,000
0
0
16,268,224
3,000,000
10,500,000
234,019
38,229,059
4,000,000
15,500,000
2,999,135
49,338,096
2,000,000
16,000,000
4,778,020
40,276,467
1,000,000
16,500,000
2,570,338
27,906,433
0
12,800,000
1,291,467
3,718,055
0
0
288,075
0
0
0
0
24,275,280
-3,000,000
-30,000,000
-25,000,000
2,534,205
15,729,924
26,560,076
20,206,129
13,814,966
3,429,979
Cashflow and NPV

Cashlows
A$ Real
Cashstream 2: Capital Costs - Existing Case A$ Real
A$ Real
A$ Real
A$ Real
IRR - Existing Case
9.1%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
Intro & Audit

worksheet

A$ Real
A$
NPV - Existing Case
A$
2,007,342
-2,886,751
-2,886,751
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
8%
0.48
-26,729,179
-29,615,930
-20,624,367
-50,240,297
1,935,792
-48,304,505
11,125,505
-37,179,000
17,393,968
-19,785,033
12,252,613
-7,532,420
7,756,605
224,185
1,783,157
2,007,342
0
2,007,342
2,007,342
Workings in one worksheet
19
such as
Cost reduction
Day-to-day comparisons
Pre-Feasibility or Selection Phase Studies

20
2022
2023
2024
-10
2016
2017
-30
2020
2021
2022
2023
2024
-40
Cashflow Deficit
Cashstream 4: Taxes
Cashflow Deficit
0
-10
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Cashstream 3: Operating Costs - Alternative B
2020
2021
2022
2023
2024
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
-20
-40
-40
-60
2015
-10
-60
2016
2017
2018
2019
2020
2021
2022
2023
Cumulative NPV
2016
Cumulative NPV - Alternative A
Discounted Cashflow - Alternative B
2016
2017
3,000
60
1,000
0
$/ounce
2,000
-1,000
-2,000
-3,000
2016
2017
Gold sold
2018
2019
2020
2021
Gold price Forecast
2022
2023
2024
Alternative A - Sales, Price, Margin
1,000
2016
2017
Gold sold
2018
2019
2020
2021
2022
Gold price Forecast
2023
A$
A$
processing cost
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2019
2020
2021
2022
2023
2024
2018
2019
1,500
1,000
2017
2018
2019
2020
2021
State Royalty
2022
2023
Income Tax
2024
2016
2017
2018
2019
2020
Gold sold
2021
mining cost
2022
2023
2021
2022
2023
2019
2020
2021
2022
2023
processing cost
2017
2019
2020
2021
2022
2023
2024
1,800
2,000
1,900
1,800
1,700
1,600
1,600
1,600
1,600
1,600
30
30
30
30
30
30
30
30
30
5%
5%
5%
5%
5%
5%
5%
5%
5%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
A$M
Au Grams/Tonne
Au Grams/Tonne
Government Royaties
2017
2018
2019
2020
2021
State Royalty
2018
2019
Discount Rate
% Real
8%
8%
8%
8%
8%
8%
8%
8%
8%
8%
2022
2023
Total
2022
2023
2024
2024
2016
2017
2018
2019
2020
2021
Ore Production
2022
2023
2024
2016
2017
2018
2019
2020
2021
2022
2023
2024
500,000
3.1
49,839
83%
41,367
500,000
3.8
61,093
83%
50,707
500,000
2.9
46,624
83%
38,698
350,000
2.8
31,511
83%
26,154
A$ Real
175,736
300,000
2.5
24,116
78%
18,810
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,387
40,065
3
2,925
50,169
3
2,233
39,391
3
1,509
26,878
3
0
1,509
3
0
0
0
288,729,675
1800
0
2000
0
1900
0
1800
31,905,145
1700
68,110,902
1600
80,269,602
1600
63,024,981
1600
43,004,798
1600
2,414,247
1600
0
30
0
30
0
30
2,622,341
30
5,598,156
30
6,597,502
30
5,180,135
30
3,534,641
30
0
30
0
2022
2023
- Sales, Price, Margin
2,500
2,000
1,500
1,000
2024
2015
2016
2017
2018
Gold sold
3,000,000
30,000,000
25,000,000
3,000,000
30,000,000
25,000,000
A$ Real
68,000,000
% of contained gold
68,000,000
A$ Real
A$/ounce Real
76,300,000
29,282,804 65,135,086 79,270,257 64,442,348 44,650,293 5,948,888
2019
2020
Gold price Forecast
2021
4,000,000
2,000,000
1,000,000
4,000,000
2,000,000
1,000,000
10%
6,858,601
23%
15,502,975
29%
19,412,366
22%
15,241,935
15%
10,400,262
5
1,500,000
20
6,000,000
3,000,000
5
2,500,000
20
10,000,000
3,000,000
6
3,000,000
20
10,000,000
3,000,000
7
3,500,000
20
10,000,000
3,000,000
8
2,800,000
20
7,000,000
3,000,000
1%
583,860
0%
0
0
5,000,000
10,500,000
15,500,000
16,000,000
16,500,000
12,800,000
5,000,000
558
375
316
426
489
2024
2022
2023
2024
10,000,000
0
2016
2017
2018
2019
2020
2021
2022
2023
processing cost
0.0%
14,436,484
5.0%
0
5.0%
0
5.0%
0
5.0%
1,595,257
5.0%
3,405,545
5.0%
4,013,480
5.0%
3,151,249
5.0%
2,150,240
5.0%
120,712
5.0%
0
68,110,902
80,269,602
63,024,981
43,004,798
2,414,247
15,500,000
15,502,975
3,405,545
33,702,381
16,000,000
19,412,366
4,013,480
40,843,756
16,500,000
15,241,935
3,151,249
28,131,798
12,800,000
10,400,262
2,150,240
17,654,296
5,000,000
583,860
120,712
-3,290,326
0
0
0
0
30.0%
10,110,714
10,110,714
30.0%
12,253,127
12,253,127
30.0%
8,439,539
8,439,539
30.0%
-987,098
-987,098
30.0%
0
0
A$ Real
53,434,441
5,480,643
13,516,259
16,266,607
11,590,788
7,446,529
-866,385
Cashstream 1: Revenue
Cashstream 4: Taxes
A$ Real
A$ Real
A$ Real
A$ Real
288,729,675
68,000,000
76,300,000
53,434,441
0
3,000,000
0
0
0
30,000,000
0
0
0
25,000,000
0
0
29,282,804
3,000,000
10,500,000
5,480,643
65,135,086
4,000,000
15,500,000
13,516,259
79,270,257
2,000,000
16,000,000
16,266,607
64,442,348
1,000,000
16,500,000
11,590,788
44,650,293
0
12,800,000
7,446,529
30.0%
5,296,289
5,296,289
5,948,888
0
5,000,000
-866,385
0
0
0
0
9
8
7
6
5
4
3
2
1
0
Cashflow
A$ Real
90,995,234
-3,000,000
-30,000,000
-25,000,000
10,302,161
32,118,827
45,003,650
35,351,559
24,403,764
1,815,273
IRR
Real
28.8%
2016
2017
2018
2019
2020
2021
A$ Real
A$
NPV
A$
45,900,828
-2,886,751
-2,886,751
8.0%
0.89
8.0%
0.82
8.0%
0.76
8.0%
0.71
8.0%
0.65
8.0%
0.61
8.0%
0.56
8.0%
0.52
8.0%
0.48
-26,729,179
-29,615,930
-20,624,367
-50,240,297
7,869,465
-42,370,832
22,717,094
-19,653,739
29,472,507
9,818,768
21,436,514
31,255,282
13,701,832
44,957,115
943,713
45,900,828
0
45,900,828
45,900,828
Existing case
2022
2023
2024
0
2015
-10
2016
2017
2018
2019
2020
2021
2022
2023
2024
-20
-30
Cashstream 4: Taxes - Alternative B
Cumulative NPV - Alternative B
Alternative B - Mining
0
2015
2016
2017
2018
2019
units
2020
2021
2022
2023
2016
2017
2018
2019
2020
2021
Ore Production
60Alternative B
6
5
4
3
2
1
0
300,000
200,000
2022
2023
2,500
2,000
40
1,500
1,000
20
500
0
-500
2015
2024
2016
2017
2018
Gold sold
Head grade
2019
2020
Gold price Forecast
2021
2022
2023
2024
2023
2024
Pretax margin/oz
Alternative B - Opex
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2022
2023
2016
2017
2018
mining cost
2024
2019
2020
2021
2022
processing cost
2023
Alternative B - Capex
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2015
2024
2016
2017
2018
2019
2020
2021
fixed costs
2022

14
12
10
8
6
4
2
0
-2
Tax - Alternative B
2015
2016
2017
2024
2018
2019
2020
2021
State Royalty
2022
2023
2024
Income Tax
Income Tax
Total
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Life of Mine
units
Total
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
300,000
2.5
24,116
75%
18,087
500,000
2.7
43,408
80%
34,727
500,000
1.6
25,723
80%
20,579
500,000
3.5
56,270
80%
45,016
1.1
0
80%
0
3
0
3
0
0
3
0
0
3
1,043
17,043
3
2,003
33,767
3
1,187
21,395
3
2,597
43,606
3
0
2,597
3
0
0
3
0
0
0
196,238,715
1800
0
2000
0
1900
0
1800
30,678,024
1700
57,403,382
1600
34,232,006
1600
69,769,973
1600
4,155,330
1600
0
1600
0
30
0
30
0
30
2,521,481
30
4,718,086
30
2,813,590
30
5,734,518
30
0
30
0
30
0
30,000,000
20,000,000

Production
Production
0
0
0
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
600,000
1.3
25,080
75%
18,810
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
3
0
0
0
266,633,502
1800
0
2000
0
1900
0
1800
31,905,145
1700
63,655,392
1600
65,614,643
1600
69,730,398
1600
33,899,580
1600
1,828,345
1600
0
30
0
30
0
30
2,622,341
30
5,231,950
30
5,392,984
30
5,731,266
30
2,786,267
30
0
30
0
13 Aug 12 T Benson mine schedule "Mine Plan for new technology 12 Aug 11"
Ore Production
tonnes
1,800,000
Head grade
grams/tonne
2.6
ounces
149,518
Processing Recovery
% of contained gold
Gold produced
ounces
118,408
Sales

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
0
162,090

Gold in circuit
Gold in circuit
Gold sold
weeks
ounces
ounces
0
118,408
Revenue

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
Cashstream 1: Revenue - Alternative

A$ Real A 266,633,502
######### ######### ######### ######### ######### 4,614,612
10 Aug 12 G Dawson email "Capital Cost Estimate: Indicative Estimates for New Technology route"
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
3,000,000 ######### ######### 6,000,000 6,000,000 2,000,000 1,000,000

A$ Real B 196,238,715
######### ######### ######### ######### 9,889,849
13%
12,809,852
1%
690,889
0%
0
Cashstream 2: Capital Costs -A$

Alternative
Real
62,000,000
B
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000 ######### ######### 3,000,000 3,000,000 3,000,000
14%
8,924,095
29%
17,680,636
18%
11,202,674
37%
22,832,733
2%
1,359,862
0%
0
0%
0
4
1,200,000
15
4,500,000
3,500,000
4
2,000,000
15
7,500,000
3,500,000
5
2,500,000
15
7,500,000
3,500,000
6
3,000,000
15
7,500,000
3,500,000
6
0
15
0
3,500,000

11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
% of contained gold
62,000,000

25 May 12 G Dawson email "Operating Cost Estimate: Indicative Estimates for new technology." There is no waste to be mined.
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

A$-Real
Alternative
103,600,000
A

Debtors
days
Debtors - Closing
A$ Real
A$ Real
53,000,000
A$ Real
9,000,000
40,000,000
% of contained gold
98,000,000
cost per ounce

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
4
2,400,000
15
9,000,000
3,500,000
A$/ounce Real
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
######### ######### ######### ######### #########

792
583
571
560
919
A$ Real/ tonne ore
25
mining cost
A$ Real
8,700,000
A$ Real/ tonne ore
75
processing cost
A$ Real
27,000,000
fixed costs
A$ Real
17,500,000

A$-Real
Alternative
53,200,000
B
cost per ounce
9,200,000 ######### ######### ######### 3,500,000
A$/ounce Real
509
374
656
311
5.0%
1,533,901
5.0%
2,870,169
5.0%
1,711,600
5.0%
3,488,499
5.0%
207,767
5.0%
0
5.0%
0
30,678,024
57,403,382
34,232,006
69,769,973
4,155,330
9,200,000
8,924,095
1,533,901
11,020,027
13,000,000
17,680,636
2,870,169
23,852,577
13,500,000
11,202,674
1,711,600
7,817,732
14,000,000
22,832,733
3,488,499
29,448,741
3,500,000
1,359,862
207,767
-912,298
0
0
0
0
0
0
0
0
30.0%
3,306,008
3,306,008
30.0%
7,155,773
7,155,773
30.0%
2,345,320
2,345,320
30.0%
8,834,622
8,834,622
30.0%
-273,690
-273,690
30.0%
0
0
30.0%
0
0
-65,923
9,889,849
0
3,500,000
-65,923
0
0
0
0
0
0
0
0
Cashstream 4: Taxes
Cashstream 4: Taxes
Government Royaties
0.0%
13,331,675
5.0%
0
5.0%
0
5.0%
0
5.0%
1,595,257
5.0%
3,182,770
5.0%
3,280,732
5.0%
3,486,520
5.0%
1,694,979
5.0%
91,417
5.0%
0

State Royalty
% of revenue
State Royalty
A$ Real
0.0%
9,811,936
5.0%
0
5.0%
0
5.0%
0
Company Income Tax
Company Income Tax

Gold Revenue
266,633,502
0
0
0
31,905,145
less
Cashstream 3: Operating Costs - Alternative A
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
13,331,675
0
0
0
1,595,257
Assessable Income
51,701,827
0
0
0
4,693,264
0.0%
30.0%
30.0%
30.0%
30.0%
Income Tax
15,510,548
0
0
0
1,407,979
Income tax payment
15,510,548
0
0
0
1,407,979
Cashstream 4: Taxes - Alternative

A$ Real
A
28,842,223
266,633,502
98,000,000
103,600,000
28,842,223
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
65,614,643
69,730,398
33,899,580
1,828,345
23,500,000
24,794,226
3,280,732
14,039,685
24,500,000
26,349,473
3,486,520
15,394,406
18,200,000
12,809,852
1,694,979
1,194,749
0
690,889
91,417
1,046,039
0
0
0
0
30.0%
4,600,105
4,600,105
30.0%
4,211,905
4,211,905
30.0%
4,618,322
4,618,322
30.0%
358,425
358,425
30.0%
313,812
313,812
30.0%
0
0
405,229

A$ Real
B
4,614,612
0
0
405,229
0
0
0
0
Cashstream 1: Revenue - Alternative B

Cashstream 2: Capital Costs - Alternative B
Cashflow - Alternative B
A$ Real
49,858,746
IRR - Alternative B
Real
20.2%
3,003,236 7,782,875 7,492,638 8,104,842 2,053,404
Gold Revenue
196,238,715
0
0
0
less
53,200,000
0
0
0
62,000,000
0
0
0
State Royalty
9,811,936
0
0
0
Assessable Income
71,226,779
0
0
0
0.0%
30.0%
30.0%
30.0%
Income Tax
21,368,034
0
0
0
Income tax payment
21,368,034
0
0
0
63,655,392
22,500,000
22,638,938
3,182,770
15,333,685
31,179,970
196,238,715
62,000,000
53,200,000
31,179,970
0
3,000,000
0
0
0
30,000,000
0
0
0
20,000,000
0
0
4,839,909 ######### 4,056,920 #########
Cashflow and NPV
Cashflow and NPV
Cashlows
Cashstream 1: Revenue - Alternative A

Cashstream 2: Capital Costs - Alternative A
Cashstream 4: Taxes - Alternative A
A$ Real
A$ Real
A$ Real
A$ Real
Cashflow - Alternative A
A$ Real
IRR - Alternative A
Real
29,282,804
6,000,000
14,900,000
3,003,236
61,045,783
6,000,000
22,500,000
7,782,875
65,453,608
2,000,000
23,500,000
7,492,638
69,392,117
1,000,000
24,500,000
8,104,842
36,844,578
0
18,200,000
2,053,404
36,191,279 -3,000,000 ######### ######### 5,379,568 ######### ######### ######### ######### 4,209,383
9.7%
A$ Real
A$ Real
A$ Real
A$ Real
28,156,542
3,000,000
9,200,000
4,839,909
55,206,778
3,000,000
13,000,000
10,025,942
36,136,503
3,000,000
13,500,000
4,056,920
66,849,044
0
14,000,000
12,323,121
-3,000,000 ######### ######### ######### ######### ######### ######### 6,455,772
Discounting
Discounting
Discounted Cashflow
Cumulative NPV
2021
-40
2015
2015
Cashlows
Cashflow and NPV
2020
-50
2024
fixed costs
Tax - Alternative A

State Royalty
% of revenue
State Royalty
A$ Real
Company Income Tax
2019
100,000
30,000,000
20,000,000
5,000,000
Government Royaties
Cashstream 4: Taxes
2018
Pretax margin/oz

3,000,000
3,000,000
Gold Revenue
288,729,675
0
0
0
31,905,145
less
76,300,000
0
0
0
10,500,000
68,000,000
0
0
0
6,858,601
State Royalty
14,436,484
0
0
0
1,595,257
Assessable Income
129,993,191
0
0
0
12,951,286
0.0%
30.0%
30.0%
30.0%
30.0%
Income Tax
38,997,957
0
0
0
3,885,386
Income tax payment
38,997,957
0
0
0
3,885,386
2017
Cashflow Deficit
500,000
Alternative A - Capex
50,000,000
Cashstream 2: Capital Costs -A$

Alternative
Real
98,000,000
A

A$ Real
58,000,000
A$ Real
10,000,000
2016
400,000
40,000,000

Debtors
days
Debtors - Closing
A$ Real
288,729,675
2015
Revenue

Debtors
days
Debtors - Closing
A$ Real
-30
-40
Sales
2,150,000
3.1
213,183
175,736
20
10
10
-10
-20
Cashstream 2: Capital Costs - Alternative B
Head grade
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090

Production
Alternative B - NPV
30
A$ M
A$M
2021
500
Alternative A - Opex
Life of Mine
Discounting
Intro &
Audit
worksheet
2020

2015
Discount Rate
% Real
0.0%
8.0%
Discount Factor
0.96
Results
summary &
common
inputs
2019
20
15,000,000
2021
Cashlows
Discounting
2018
40
10,000,000
2020
Income Tax
units

Ore Production
tonnes
Head grade
grams/tonne
ounces
Processing Recovery
% of contained gold
Gold produced
ounces
Cashstream 4: Taxes
Company Income Tax
2017
Discounted Cashflow - Alternative A
25,000,000
Government Royaties
2018
2015
mining cost
2016
2016
-40
60Alternative A
6
5
4
3
2
1
0
State Royalty
2016

State Royalty
% of revenue
State Royalty
A$ Real
2017
Alternative A - Mining
2015
2015
2015
-20
400,000
Gold price Forecast
Income Tax
200,000
2015
2015

2018
800,000
30,000,000
-5
cost per ounce

2017
2024
State Royalty
2023
600,000
2024
2016
2022
1,000,000
Capex
35
30
25
20
15
10
5
0
2024
A$ Real/ tonne ore
31
mining cost
A$ Real
13,300,000
A$ Real/ tonne ore
100
processing cost
A$ Real
43,000,000
fixed costs
A$ Real
20,000,000
2015
2021
-80
Cashflow Deficit
0
2015
14
12
10
8
6
4
2
0
-2
2020
20,000,000
2020

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
fixed costs
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
A$M
2016
2016
5%
2024
2019
-60
Revenue

State Royalty
% of revenue
2024
Revenue
processing cost
Tax - Alternative B
Total
2023
Sales
5,000,000
2015
units
Pretax margin/oz
15,000,000
Income Tax

Gold in circuit
weeks
Gold price Forecast
A$/ounce Real
Debtors
days
2022
500
Head grade

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
Inputs - Common
Life of Mine
2024
Alternative B - Opex
Tax - Alternative A
2015
2023
10,000,000
A$M
A$M
2018
2022
25,000,000
-5
2021
20,000,000
9
8
7
6
5
4
3
2
1
0
2020
35,000,000
2021
30,000,000
Tax - Existing Case
10
2019
Gold price Forecast
mining cost
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
15
2018
Alternative B - Capex
A$
5,000,000
2017
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
fixed costs
A$
15,000,000
10,000,000
State Royalty
-500
25,000,000
2017
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2016
1,500
1,000
2016
Gold sold
5,000,000
mining cost
20,000,000
2020
2,500
2,000
500
2015
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
35,000,000
Pretax margin/oz
15,000,000
20
Alternative B - Sales, Price, Margin
20
10,000,000
fixed costs
30,000,000
2023
2018
Life of Mine
10
25,000,000
processing cost
2022
2019
Head grade
30
2024
30,000,000
A$
Ore Production
20,000,000
mining cost
2021
2018
10
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
2015
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2015
40
2,000
1,500
500
200,000
100,000
50
2,500
20
Pretax margin/oz
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Head grade
40
2020
2017
15
6
5
4
3
2
1
0
$/ounce
Existing Case - Sales, Price, Margin
2015
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Ore Production
20
0
Head grade
40
2019
2017
600,000
2,500
2,000
2016
Tax - Existing Case
Alternative B - Mining
400,000
300,000
A$
Gold Ounces (000's)
60
400,000
200,000
Ore Production
2018
fixed costs
500,000
2016
after debtors
Sales and Price

2015
Opex
2015
600,000
$/ounce
Au Grams/Tonne
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
6
5
4
3
2
1
0
800,000
600,000
Gold Ounces (000's)
200,000
100,000
1,200,000
1,000,000
2015
-40
20
6
5
4
3
2
1
0
400,000
300,000
0
-10
-20
-50
20
15
-50
500,000
2017
10
2024
10
-40
-80
Discounted Cashflow
2024
1,200,000
040
5
2015
-20
-30
600,000
2023
Cumulative NPV
Revenue
50
60
A$ M
A$ M
A$ M
2019
20
20
2018
100,000
10
2017
300,000
200,000
Alternative B - NPV
30
20
0
2016
2022
Cashflow Deficit
Alternative A - NPV
40
40
20
-20
6
5
4
3
2
1
0
Ore Production
Cashstream
2: Capital Costs - Alternative B
-40
60
2015
2021
-30
100
Mining
500,000
400,000
-30
Cashstream
2: Capital Costs - Alternative A
-50
10
-20
Existing Case - NPV
2019

67.4
67.4
202.2 Any item that is dubious or needing verification is in pink font
recovery
% silver
36%
36% The complete row is referenced across including its title in column A as a check that the correct data is being referenced.
134.8
134.8
2018
Gold Ounces (000's)
Each evaluation is simplified into four streams: Revenue, Operating Costs, Capital Costs and Taxes.
2015
-20
-30
-40
Cashstream
2: Capital Costs
2020
A$M
2021
2019
A$M
2020
2018
600,000
A$M
2019
A$M
2018
A$M
A$M
A$M
20
10
20
20
10
2017
2017
Cashstream 4: Taxes
40
30
2016
2016
Discounted Cashflow
Alternative B
Alternative B - Four Cash Streams
50
40
30
2015
2015
-60
-40
Alternative A
Alternative A - Four Cash Streams
50
40
30
-10
30
20
0
-20
-40
2024
-30
50
2023
-20
21,417,060
20.2%
Existing Case
P Card
Yet to be completed
D Martin Yet to be completed
G Darwin Yet to be completed
G Wise
Yet to be completed
C Casey Yet to be completed
2022
$/ounce
2021
Gold Ounces (000's)
2020
Au Grams/Tonne
2019
A$
2018
2017
A$
2016
40
30
20
20
$/ounce
2015
Alternative A - NPV
40
21,417,060
20.2%
Alternative B - Four Cash Streams
50
50
40
A$ M
NPV - Alternative B
A$
IRR - Alternative B Real
4,561,833
9.7%
Gold Ounces (000's)
10
-10
-20
67.4
40
20
20
Alternative B
NPV - Alternative A$
B
IRR - Alternative BReal
40
30
A$ M
4,561,833
9.7%
A$M
Alternative A
NPV - Alternative A
A$
IRR - Alternative A Real
Existing Case - NPV
60
Au Grams/Tonne
Four Cash Streams

50
A
IRR - Alternative AReal
Alternative B
Alternative A
45,900,828
28.8%
A$
Audits
Self audit
existing case
new tech case
taxes
external peer
This example is an illustration. It has not been audited and should be checked before being used.
A$
Real
$/ounce
Warnings
Worked Example - For Website
Existing case
NPV
IRR
A$M
Purpose
This 'Worked Example' illustrates the economic evaluation modelling practices recommended by AusIMM
It compares a gold mine using existing common technology with a new technology - at concept level
45,900,828
0
28.8%
Gold Ounces (000's) A$M real
Contact
Peter Card 04 07 508 924
A$
Au Grams/Tonne
Existing case
NPV
IRR
A$
Results Comparison
Discount Rate
% Real
0.0%
8.0%
Discount Factor
0.96
NPV - Alternative A
A$ Real
A$
4,561,833
A$
4,561,833
-2,886,751
-2,886,751
8.0%
0.89
8.0%
0.82
8.0%
0.76
8.0%
0.71
8.0%
0.65
8.0%
0.61
8.0%
0.56
8.0%
0.52
8.0%
0.48
-35,638,906
-38,525,657
-32,998,987
-71,524,643
4,109,266
-67,415,378
17,514,379
-49,900,999
21,258,413
-28,642,585
21,700,724
-6,941,861
9,315,346
2,373,484
2,188,349
4,561,833
0
4,561,833
Alternative A
Discount Rate
% Real
0.0%
Discount Factor
NPV - Alternative B
A$ Real
A$
21,417,060
A$
21,417,060
8.0%
0.96
8.0%
0.89
8.0%
0.82
8.0%
0.76
8.0%
0.71
8.0%
0.65
8.0%
0.61
8.0%
0.56
8.0%
0.52
8.0%
0.48
-2,886,751
-2,886,751
-26,729,179
-29,615,930
-16,499,493
-46,115,424
8,491,612
-37,623,812
20,639,103
-16,984,709
10,202,936
-6,781,773
24,574,150
17,792,377
3,624,683
21,417,060
0
21,417,060
0
21,417,060
Alternative B
21
such as
Major assessments of operations
Major assessments of projects
Major evaluations of the whole business
Final Feasibility Studies
M&A

22
Life of Mine

Contact
Peter Card 04 07 508 924
Purpose
This 'Worked Example' illustrates the economic evaluation modelling practices recommended by AusIMM
It compares a gold mine using existing common technology with a new technology - at concept level
Warnings
Audits
Self audit
existing case
new tech case
taxes
external peer
2011
Total
2012
2013
2014
2015
2016
2017
2018
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
2019
4,561,833
9.7%
0
0
40
30
A$M
10
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032
1000
0
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716

Debtors
days
Debtors - Closing
A$ Real
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0

A$ RealA
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
162,090
Revenue
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
-20
-30
-40
-50

67.4
67.4
202.2 Any item that is dubious or needing verification is in pink font
recovery
% silver
36%
36% The complete row is referenced across including its title in column A as a check that the correct data is being referenced.
134.8
134.8
Cashflow Deficit
Alternative A - NPV
40
20
A$ M
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
-20
-60
-80
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2016
2017
2018
2019
2020
2021
Ore Production
Gold Ounces (000's)
2022
2023
2024
2,500
1,000
500
0
2015
2016
2017
2018
2019
Gold sold
2020
2021
Gold price Forecast
2022
2023
20,000,000
15,000,000
A$
0
2015
2016
2017
2018
2019
mining cost
2020
2021
2022
2023
processing cost
2024
fixed costs
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Tax Deduction for Capital Expenditure % of contained gold
98,000,000
6,000,000
2,000,000
1,000,000
6,000,000
2,000,000
1,000,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
cost per ounce
103,600,000
2019
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
2018
2019
2020
State Royalty
2021
2022
Income Tax
3
0
3
0
0
1000
162,090,032

A$ RealA
162,090,032
1000
0
3
0
0
1000
0
3
1,085
17,725
1000
0
30
0
1000
17,725,080
3
2,226
37,444
3
2,374
41,009
1000
37,444,348
1000
41,009,152
2024
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
22,500,000
23,500,000
24,500,000
18,200,000
1%
690,889
2012
2013
2014
2015
2016
2017
2018
2019
Life of Mine
units
Total
2011
2012
2013
2014
2015
2016
2017
2018
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
2019
3
0
1,143
3
1,143
21,187
3
0
1,143
1000
43,581,499
1000
21,187,237
1000
1,142,716
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
40,000,000
40,000,000
40,000,000
40,000,000
98,000,000
3,000,000
6,000,000
2,000,000
1,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
Revenue
103,600,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
A$/ounce Real
0
0
1000
0
1000
0
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
40,000,000
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
41,009,152
43,581,499
21,187,237
1,142,716
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
30.0%
132,120
132,120
A$ Real
IRR - Alternative A
14,900,000
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
-9.4%
Discounting
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585

A$ Real
A$
NPV - Alternative A
A$
-37,833,798
-2,886,751
-2,886,751
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
units
Total
2011
-103,600,000
2012
2013
2014
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
2015
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
2016
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
2017
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
2018
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
2019
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
2014
600,000
1.3
25,080
75%
18,810
0
0
2015
1,000,000
1.5
48,232
80%
38,585
2016
1,000,000
1.6
51,447
80%
41,158
2017
1,000,000
1.7
54,662
80%
43,730
2018
700,000
1.1
24,759
80%
19,807
2019
Cashstream 2: Capital Costs - Alternative

A$ Real
A
40,000,000
40,000,000
6,000,000
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
98,000,000
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0

A$ Real
A
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133

A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
98,000,000
40,000,000
40,000,000
40,000,000
40,000,000
6,000,000
3,000,000
% of contained gold
98,000,000
6,000,000
3,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
6,000,000
6,000,000
2,000,000
2,000,000
1,000,000
1,000,000
Cashstream 3: Operating Costs - A$

Alternative
Real
A
13%
12,809,852
1%
690,889
cost per ounce
103,600,000
A$/ounce Real
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
23%
22,638,938
25%
24,794,226
27%
26,349,473

State Royalty
% of revenue
State Royalty
A$ Real
0.0%
1,620,900
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794

Income Tax
Income tax payment

A$A
Real
1.0%
374,443

Debtors
days
Debtors - Closing
A$ Real
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
1.0%
410,092
41,009,152
23,500,000
24,794,226
410,092
-7,695,166
1.0%
211,872
1.0%
11,427
43,581,499
21,187,237
1,142,716
24,500,000
26,349,473
435,815
-7,703,789
1.0%
435,815
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
Cashlows
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
211,872
1.0%
11,427
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
1.0%
374,443
23,500,000
24,794,226
410,092
-7,695,166
1.0%
410,092
24,500,000
26,349,473
435,815
-7,703,789
1.0%
435,815
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
Company Income Tax

A$ Real
A$ Real
Cashstream 3: Operating Costs - Alternative
A$AReal
A$ Real
A$ Real
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861

A$AReal
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
162,090,032
98,000,000
103,600,000
-10,718,360
0.0%
-12,339,260
-12,339,260
0
3,000,000
0
0
30.0%
0
0
0
40,000,000
0
0
30.0%
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
30.0%
132,120
132,120
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
Cashflow and NPV
2,884,133
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
9,369,853
17,114,612
19,745,395
Cashstream 1: Revenue - Alternative A A$ Real

Cashstream 2: Capital Costs - Alternative AA$ Real
A$AReal
A$ Real
A$ Real
IRR - Alternative A
40,000,000
40,000,000
Cashstream 2: Capital Costs - AltA$ernati

Realve A
40,000,000
40,000,000
98,000,000
3,000,000

6,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
NPV - Alternative A
A$ Real
A$
NPV - Alternative A
A$
-37,833,798
-37,833,798
units
Total
-2,886,751
-2,886,751
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Cashstream 3: Operating Costs - A$AltRealernative A
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
2015
2016
2017
2018
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
2019
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
0
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
162,090
2,884,133
0
0
143,547
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2014
2015
2016
2017
2018
2019
Data for Graphs

Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
2011
-103,600,000
2012
2013
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
1000
162,090,032

Debtors
days
Debtors - Closing
A$ Real

A$ RealA
162,090,032
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
40,000,000

A$ Real A
40,000,000
40,000,000
98,000,000
3,000,000
6,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
22,500,000
23,500,000
24,500,000
18,200,000

98,000,000
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

Alternative
Real
A
cost per ounce
103,600,000
0
0
14,900,000
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
A$/ounce Real
Cashstream 4: Taxes
Government Royaties
State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
Company Income Tax

Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
8%
0.52
-2,886,751
-2,886,751
Revenue
2,740,585
8%
0.82
-32,998,987
-71,524,643
1%
690,889
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
-103,600,000

Income Tax
Income tax payment
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
Cashstream 4: Taxes - AlternativeA$AReal
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
0
690,889
11,427
440,400
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
Cashflow and NPV

Cashlows
A$AReal
A$ Real
A$ Real
7,626,335
2,740,585
-9.4%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
cost per ounce
2014
Data for Graphs

98,000,000
7,626,335
8%
0.89
-35,638,906
-38,525,657
-9.4%
A$ Real
A$
2013
Discount Rate
% Real
8%
Discount Factor
0.96
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
23,027,861
0
18,200,000
-2,798,474
-9.4%
Discounting
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment
2012

37,444,348
22,500,000
22,638,938
374,443
-8,069,033
0.0%
-12,339,260
-12,339,260
-10,718,360
Cashflow and NPV
1000
0
2011
0
0
Cashstream 4: Taxes
Government Royaties
11%
10,716,624
IRR - Alternative A
1000
0
Total
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Sales
Company Income Tax
103,600,000
A$/ounce Real

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
1000
162,090,032
units
3
0
0
1000
0
30
0
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

Alternative
Real
A
Life of Mine
Production
0
0
3
0
0
1000
0
IRR - Alternative A
-37,833,798
Data for Graphs

Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
2013
0
0
3
0
1000
0
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
Cashflow and NPV

A$AReal
A$ Real
0
162,090

A$ Real
A
Cashstream 4: Taxes
Government Royaties
Cashstream 1: Revenue - AlternatiA$vReale A

37,444,348
22,500,000
22,638,938
374,443
-8,069,033
2012
0
0
1000
162,090,032

Debtors
days
Debtors - Closing
A$ Real

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
3
0
cost per ounce

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
4
2,400,000
15
9,000,000
3,500,000
1000
0

A$ Real
A
Revenue
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
1000
162,090,032

Debtors
days
Debtors - Closing
A$ Real
% of contained gold
98,000,000
0
162,090
2011
Total
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
Revenue
0
162,090

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
6,000,000
6,000,000
units
Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
Life of Mine

Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Cashlows
162,090,032
98,000,000
103,600,000
-10,718,360
103,600,000
A$/ounce Real

NPV - Alternative A

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
37,444,348
A$ Real
A$
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
0
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
Cashstream 4: Taxes
Government Royaties
1.0%
211,872
1.0%
11,427
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Company Income Tax
A$ Real
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
-9.4%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
NPV - Alternative A
2011
Total
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Cashlows

Cashstream 3: Operating Costs - AlternativeA$AReal
Cashstream 4: Taxes - Alternative A A$ Real

3
2,523
43,581
Cashlows
2023
units
Production

A$ Real A
98,000,000
Discount Rate
% Real
8%
Discount Factor
0.96
Life of Mine

0
Company Income Tax
A$/ounce Real
IRR - Alternative A
2017
2018
1,000,000
1.6
51,447
80%
41,158
Cashflow and NPV
Tax - Alternative A
2016
2017
1,000,000
1.5
48,232
80%
38,585
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
Cashstream 3: Operating Costs - A$Alternative

Real A

2015

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900

Income Tax
Income tax payment
9
8
7
6
5
4
3
2
1
0
2016
600,000
1.3
25,080
75%
18,810
Cashstream 4: Taxes
Government Royaties
6,000,000
6,000,000
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
5,000,000
2015
3,000,000
Company Income Tax
10,000,000
A$
40,000,000

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
25,000,000
A$M
40,000,000
40,000,000
98,000,000
Cashstream 4: Taxes
Government Royaties
2024
Pretax margin/oz
30,000,000
$/ounce
2,000
1,500
20
40,000,000

A$ Real A
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
Head grade
40
2015
0
0
Production

Debtors
days
Debtors - Closing
A$ Real
cost per ounce
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
6
5
4
3
2
1
0
Au Grams/Tonne
2015
2014
0
0
162,090

Alternative
Real
A
-40
60Alternative A
2012
2013
0
0
Revenue
20
-10
2011
Total
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
50
units

Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Sales
Life of Mine
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Production
A
IRR - Alternative AReal
P Card
Yet to be completed
D Martin Yet to be completed
G Darwin Yet to be completed
G Wise
Yet to be completed
C Casey Yet to be completed
Each evaluation is simplified into four streams: Revenue, Operating Costs, Capital Costs and Taxes.
67.4
units
Results
Alternative A
A$ Real
A$
-37,833,798
A$
-37,833,798
units
Total

Income Tax
Income tax payment
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
% of assessable income 0.0%

-12,339,260
-12,339,260
Cashstream 4: Taxes - AlternativA$e AReal
-10,718,360
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
Cashflow and NPV

Cashlows
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122

Cashstream 2: Capital Costs - Alternative A $ Real
Cashstream 3: Operating Costs - AlternativA$e AReal
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
A$ Real
IRR - Alternative A
-9.4%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
Discounted Cashflow - Alternative A A$ Real
A$
NPV - Alternative A
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
Data for Graphs

Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
Intro &
Audit
results
production,
sales,
revenue
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
capex
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
opex
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Taxes &
govt
royalties
Cash flow
NPV, IRR,
etc
accounting
23
Life of Mine
Life of Mine
units
2011
Total
2012
2013
2014
2015
2016
2017
2018
Life of Mine
2019
units
2011
Total
2013
2014
2015
2016
2017
2018
2019
2012
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
Sales
Life of Mine
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
units
0
units
2011
Total
2012
2013
2014
2015
2016
2017
2018
2019
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
700,000
1.1
24,759
80%
19,807
2011
2012
2013
2014
2015
2016
2017
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
600,000
1.3
1000
25,080
41,009,152
75%
18,810
Sales
3 May 11 E Hermi Assume all capital is deducted

the life of mine.
Debtorsin proportion to the gold sold over days
0
0
30
23 Aug 11 J Gomachie: "Sales Plan: July 2011" 11%
Tax Deduction for Capital Expenditure %Debtors
of contained
- Closinggold
A$ Real
0
Gold in circuit
weeks10,716,624
98,000,000
Gold162,090,032
in circuit
ounces 0
A$ RealA
Gold sold
ounces
1,000,000
1.5
1000
48,232
43,581,499
80%
38,585
30
2012
3,582,041
30
2013
1,741,417
30
2014
3
43,370,073
3
23,027,861
3
2,884,133
1,085
17,725
2,226
37,444
2,374
41,009
2,523
43,581
700,000
1.1
24,759
80%
19,807
2015
3
1,143
21,187
600,000
1.3
25,080
1000
75%
0
43,581,499
18,810
30
13%
3,370,615
3
12,809,852
1,000,000
1.5
48,232
1000
80%
21,187,237
38,585
30
1%
3,582,041
3
690,889
30
1,741,417
3
0
16,268,224
0
35,823,587
0
40,716,154
1,085
43,370,073
2,226
23,027,861
17,725
37,444
4
40,000,000
4,000,000
1000
15
162,090,032
40,000,000
15,000,000
3,500,000
5
5,000,000
1000
6,000,000
15
0
6,000,000
15,000,000
6
6,000,000
1000
6,000,000
15
0
6,000,000
15,000,000
6
4,200,000
1000
2,000,000
15
0
2,000,000
10,500,000
0
1000
1,000,000
17,725,080
1,000,000
0
3,500,000
3,500,000
3,500,000
22,500,000
0
23,500,000
0
24,500,000
30
18,200,000
30
583
571
11%
10,716,624
5600
23%
0
22,638,938
9190
25%
0
24,794,226
162,090

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032
1000
0
1000
0
1000
0

Debtors
days
Debtors - Closing
A$ Real
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0

A$ RealA
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
2019
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
40,000,000

A$ Real A
40,000,000
40,000,000
1000
17,725,080
98,000,000
3,000,000
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
2016
2017
2018
6,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
0 3: Operating Costs - A$Alternative

Cashstream
Real
A
1,143
103,600,000
A$/ounce Real
Cashstream
1,000,000 4: Taxes
1,000,000
Government Royaties
1.6
51,447
1000
80%
700,000
1.1
24,759
80%
19,807
1.7
54,662
80%

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
Company
Tax
1,142,716
41,158 Income43,730
1.0%
0
1.0%
0
1.0%
0
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
30
0
3
3
2,523
43,581
2,374
2,884,133
41,009
3
1,143
21,187
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
2012
2013
2014
2015
2016
2017
2018
2019
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032

Debtors
days
Debtors - Closing
A$ Real

A$ Real
A
162,090,032
1000
0
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
3
0
0
162,090
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
40,000,000
40,000,000
40,000,000
98,000,000
6,000,000
3,000,000
1000
0
1000
0
1000
0
30
0
1000
17,725,080
30
0
30
1,456,856
1000
37,444,348
30
3,077,618
1000
41,009,152
30
3,370,615
1000
43,581,499
30
3,582,041
1000
21,187,237
30
1,741,417
1000
1,142,716
30
0
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889

Alternative
Real
A
103,600,000
A$/ounce Real
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
3 0.0%
-12,339,260
0
-12,339,260
1,143
-10,718,360

37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
30.0%
132,120
132,120
143,547
Cashflow and NPV
0.0%
-12,339,260
-12,339,260
1.0%
0
30.0%
0
0
1.0%
0
30.0%
0
0

A$AReal
A$ Real
1.0%
211,872
1.0%
11,427
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
-2,420,638
-2,420,638
1.0%
177,251
30.0%
-2,420,710
-2,420,710
1.0%
374,443
30.0%
-2,308,550
-2,308,550
1.0%
410,092
30.0%
-2,311,137
-2,311,137
1.0%
435,815
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
A$ Real
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
IRR - Alternative A
40,000,000
40,000,000
40,000,000
98,000,000
3,000,000

6,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
NPV - Alternative A
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
units
2011
Total
2012
2013
2014
2015
2016
2017
2018
162,090
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032
1000
0
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716

Debtors
days
Debtors - Closing
A$ Real
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0

A$ Real
A
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
40,000,000
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
162,090

A$ Real
A
1000
162,090,032
1000
0

A$ RealA
162,090,032
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
40,000,000
6,000,000
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
103,600,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
0.0%
1,620,900
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
98,000,000
3,000,000
40,000,000
6,000,000
2,000,000
1,000,000
13%
12,809,852
1%
690,889

% of contained gold
98,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
30
0
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000

A$ Real A
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

Alternative
Real
A
cost per ounce
A$/ounce Real
Cashstream 4: Taxes
Government Royaties
162,090,032
1.0%
40,000,000
4
435,815
4,000,000
40,000,000
15
15,000,000
3,500,000
43,581,499
1.0%
40,000,000
5
211,872
5,000,000
40,000,000
15
15,000,000
3,500,000
21,187,237
30
3,077,618
13%
35,823,587
12,809,852
1.0%
6
11,427
6,000,000
6,000,000
6
6,000,000
4,200,000
6,000,000
15
6,000,000
15
15,000,000
3,500,000
1,142,716
10,500,000
3,500,000
30
Discounting
3,370,615
30
3,582,041
A$ Real
-28,791,608
30
1,741,417
30
0
1%
40,716,154
690,889
43,370,073
23,027,861

A$ Real
A$
NPV - Alternative A
A$
2,000,000
0
Data for Graphs
2,000,000
1,000,000
units
23%
919
22,638,938
25 May30.0%
11 G Dawson email "Operating
to be mined. 30.0%
%2 ofJuneassessable
income
30.0%paid monthly
30.0% Cost Estimate:
30.0%Indicative Estimates
30.0%for new technology."
30.0%There is no waste30.0%
11 R Torply:
SA State 0.0%
Royalty is 1% of revenue
mining 0.0%
cost0 per tonne 1.0%
A$ Real/
tonne ore -2,420,710
25
-12,339,260 % of revenue
0
0
-2,420,638
-2,308,550
-2,311,137
-3,010,346
State Royalty
1.0%
1.0%
1.0%
1.0%
1.0%
mining1,620,900
cost0
A$ Real-2,420,638
21,600,000
-12,339,260 A$ Real 0
-2,420,710
-2,308,550
-2,311,137
-3,010,346
State Royalty
0
0
0
177,251
374,443
410,092
A$ Real/ tonne ore
75
processing cost
A$ Real
Cashstream 4: Taxes - AlternativeA$Company
AReal Income-10,718,360
0
0
0
-2,243,387 64,500,000
-2,046,266
-1,898,458
-1,875,322
-2,798,474
Tax
fixed costs
A$ Real
17,500,000
Real A 103,600,000
0
0
0
Gold Revenue
162,090,032
0
0
0
17,725,080
37,444,348
41,009,152
cost per ounce
A$/ounce Real
less
30.0%
4
132,120
1.0%
2,400,000
132,120
435,815
15
9,000,000
143,547
3,500,000
4
1.0%
4,000,000
211,872
15
15,000,000
3,500,000
5
1.0%
5,000,000
11,427
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
560
919
24,500,000
26,349,473
2,884,133
435,815
0
-7,703,789
0
143,547
30.0%
1.0%
-2,311,137
177,251
2,740,585
-2,311,137
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
410,092
-7,695,166
Cashflow and NPV
Cashlows

103,600,000
0
0
0
98,000,000 4: Taxes0
0
0
Cashstream
162,090,032
0
0
0
16,268,224
35,823,587
State Royalty
1,620,900
0
0
0
98,000,000
3,000,000 Government
40,000,000
40,000,000
6,000,000
6,000,000
Assessable Income
-41,130,868 Royaties0
0
0
103,600,000
0
0 is 1% of revenue
14,900,000
2 June 11 R0 Torply: SA State Royalty
paid monthly 22,500,000
Cashstream 4: Taxes - Alternative A A$Company
Real Income Tax Rate
-10,718,360 % of assessable
0 incomeState Royalty
0
-2,243,387
-2,046,266
0.0%0
30.0%
30.0%
30.0%
% of revenue
0.0%
0
0
0
Royalty
A$ Real-2,388,388
1,620,900
Cashflow - Alternative A A$Income
Real Tax
-28,791,608
-3,000,000 State-12,339,260
-40,000,000
-40,000,000
9,369,853
Income tax payment
-12,339,260
0
0
0
IRR - Alternative A
14,900,000
10,716,624
40,716,154
177,251
2,000,000
-8,068,794
23,500,000
-1,898,458
30.0%
1.0%
-2,420,638
0
17,114,612
-2,420,638
22,500,000
22,638,938
43,370,073
374,443
1,000,000
-8,069,033
24,500,000
-1,875,322
30.0%
1.0%
-2,420,710
0
19,745,395
-2,420,710
23,500,000
24,794,226
23,027,861
410,092
0
-7,695,166
18,200,000
-2,798,474
30.0%
1.0%
-2,308,550
0
7,626,335
-2,308,550
43,581,499
792
21,187,237
583
30.0%
1.0%
-3,010,346
374,443
-3,010,346
Company Income Tax
-9.4%
-10,718,360
0
0
0
-2,243,387
-2,046,266
-1,898,458
-1,875,322
Gold Revenue
162,090,032
0
0
0
17,725,080
less
17 July 10 F Green email: discount rate for investment in gold is 8% Real. The base date is 1 July 2011 Cashstream 3: Operating Costs - Alternative A
103,600,000
0
0
0
14,900,000
Discount Rate
% Real
8%
8% for capital expenditure
8%
8%
8%
8%0
8%0
8%0
8%
Tax deduction
98,000,000
10,716,624
Cashlows
Discount Factor
0.96
0.89
0.82
0.76
0.71
0.65
0.61
0.56
0.52
State Royalty
1,620,900
0
0
0
177,251
162,090,032
0
0
0
16,268,224
35,823,587
40,716,154
43,370,073
Assessable Income
-41,130,868
0
0
0
-8,068,794
- Alternative AA$ Real-2,886,751
98,000,000
3,000,000
40,000,000
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
Discounted Cashflow - Alternative A A$Cashstream
Real 2: Capital Costs-37,833,798
-35,638,906
-32,998,987
-1,824,407
6,627,136
11,208,214
11,973,232
4,281,912
1,424,759
103,600,000
0
0 income -66,721,915
14,900,000
22,500,000
23,500,000
24,500,000
A$Cashstream 3: Operating Costs - AlternativeA$AReal-2,886,751 Company
-38,525,657
-73,349,051
-55,513,701
-43,540,468
-39,258,557
-37,833,798
Income Tax Rate-71,524,643
% of assessable
0.0%0
30.0%
30.0%
30.0%
30.0%
Income
Tax
-12,339,260
0
0
0
-2,420,638
A A$ Real
-10,718,360
0
0
0
-2,243,387
-2,046,266
-1,898,458
-1,875,322
NPV - Alternative A
A$Cashstream 4: Taxes - Alternative
-37,833,798
Income
tax payment -3,000,000
0
0
0
-2,420,638
Cashflow - Alternative A A$ Real
-28,791,608
-40,000,000 -12,339,260
-40,000,000 -2,388,388
9,369,853
17,114,612
19,745,395
Discounting
Cashflow and NPV
Cashstream
-9.4% 4: Taxes - AlternativeA$AReal
IRR - Alternative A
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
Discounting
units
Total
Cashflow
2012 and NPV
2013
2011
2014
-10,718,360
-2,243,387
2015
2016
2017
2018
2019
NPV - Alternative A
Data for Graphs
-103,600,000
A$
103,600,000
units
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
Cashflow
- Alternative
A
-37,833,798
0
0
40,000,000
IRR - Alternative
-40,000,000 A
-35,638,906
-38,525,657
Discounting
0
0A$ Real
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
-22,500,000
-23,500,000
9,369,853
0
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
0
1,000A$ Real
0
0A$
-3,000,000
A$
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751

NPV - Alternative
A
-103,600,000
Data for Graphs

Life of Mine
Ore Production 103,600,000
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashstream 4: Ta
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
-9.4% 9,369,853
6,627,136
-66,721,915
589
22,048,812
2015
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
-18,200,000
2016
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
2017
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
98,000,000

Alternative
Real
A
3,000,000
40,000,000
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment

A$A
Real
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
A$
-37,833,798
8%
0.89
-2,886,751
-2,886,751
8%
0.82
-35,638,906
-38,525,657
8%
0.76
-32,998,987
-71,524,643
8%
0.71
-1,824,407
-73,349,051
8%
0.65
6,627,136
-66,721,915
8%
0.61
11,208,214
-55,513,701
8%
0.56
11,973,232
-43,540,468
Cashflow and NPV

A$ Real
A$ Real
A$AReal
A$ Real
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment
1,424,759
-37,833,798
-37,833,798
A$ Real
IRR - Alternative A
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
9,369,853
17,114,612
19,745,395
23,027,861
0
18,200,000
-2,798,474
7,626,335

NPV - Alternative A
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
37,444,348
22,500,000
22,638,938
374,443
-8,069,033
41,009,152
23,500,000
24,794,226
410,092
-7,695,166
43,581,499
21,187,237
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
A$ Real
A$
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2012
2013
2014
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
2015
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
2016
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
2017
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
2018
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
2019
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
units
Total
2011
-103,600,000
2012
2013
2014
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
2015
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
2016
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
2017
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
2018
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
-103,600,000
2019
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
1,142,716
0
690,889
11,427
440,400
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
Cashflow and NPV
2019
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Cashlows

A$AReal
A$ Real
A$ Real
IRR - Alternative A
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
9,369,853
17,114,612
19,745,395
23,027,861
0
18,200,000
-2,798,474
7,626,335
2,884,133
0
0
143,547
2,740,585
-9.4%
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Discount Rate
% Real
8%
Discount Factor
0.96

A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
cost per ounce
103,600,000
A$/ounce Real
NPV - Alternative A
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
37,444,348
A$ Real
A$
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
1.0%
211,872
1.0%
11,427
23,500,000
24,794,226
410,092
2,884,133
-7,695,166
0
0
30.0%
-2,308,550
143,547
-2,308,550
2,740,585
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
23,500,000
1,424,759
-37,833,798
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
2018
2019
8%
0.61
8%
0.56
8%
0.52
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798

Income Tax
Income tax payment

-12,339,260
-12,339,260
-10,718,360
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Cashflow and NPV

Cashlows
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
A$ Real
IRR - Alternative A
-9.4%
Discounting
-103,600,000
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
8%
0.71
0
0.0
0
0
11,208,214 1,000
1,143
-55,513,7012,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
2016
1,003,779
1,000,000
122
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
8%
0.65
Discount Rate
% Real
8%
Discount Factor
0.96
A$
NPV - Alternative A
2017
2018
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
2019
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
0
0.0
0
0
1,000
1,143
2,884,133
0
0
Data for Graphs

Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
capex
www.econom ceva uat on.com.au
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
opex
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Taxes &
govt
royalties
Cash flow
NPV, IRR,
etc
peter@econom ceva uat on.com.au
8%
0.52
-2,886,751
-2,886,751
Discounting
8%
0.76
-1,824,407
-73,349,051
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
98,000,000
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
2,884,133
0
0
143,547
2,740,585
-9.4%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
Company Income Tax
8%
0.52
4,281,912
-39,258,557
Data for Graphs

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
-9.4%
A$ Real
A$
103,600,000
A$/ounce Real
Company Income Tax
22,500,000
22,638,938
374,443
23,027,861
-8,069,033
0
18,200,000
30.0%
-2,420,710
-2,798,474
-2,420,710
7,626,335
0
0
1,000
0
0
-40,000,000
0
production,
sales,
revenue
2,740,585
8%
0.82
-32,998,987
-71,524,643
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
1.0%
11,427
0
0
1,000
0
0
-40,000,000
0
43,730
7,626,335

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
1,142,716
0
0
1,000
0
0
-3,000,000
0
41,158
19,745,395
8%
0.89
1.0%
211,872
38,585
17,114,612
2,884,133
0
0
143,547
21,187,237
8%
40,716,154
0.52
2,000,000
9,369,853
23,027,861
0
18,200,000
-2,798,474
Company Income Tax
Cashstream 4: Taxes
Government Royaties
Cashstream 4: Taxes
Government Royaties
1.0%
435,815
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
2014
24,442,972
600,000
439
1.3
18,810
-2,886,751 1,000 -35,638,906 1,000 -32,998,987 1,000 -1,824,407 1,000

17,725
37,444
41,009
43,581
-2,886,75116,268,224 -38,525,657
35,823,587 -71,524,643
40,716,154 -73,349,051
43,370,073
-2,388,388
43,370,073
1,000,000
24,500,000
-1,875,322
-35,638,906
-38,525,657
103,600,000
43,581,499
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
2013
23,452,8580
428
0.0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
8% 1,000,000
1.7
0.76 54,662
30.0%
1.0%
132,120
410,092
132,120
1%
690,889
143,547
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
2012
22,048,8120
411
0.0
0
0
8% 1,000,000
1.6
0.82 51,447
-40,000,000
-2,886,751
-2,886,751
2011
-103,600,000
13%
12,809,852
41,009,152
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
2011
14,040,3850
208
0.0
-37,833,798 1,000
-40,000,000
-37,833,798
0
8% 1,000,000
1.5
0.89 48,232
1,142,716
571
27%
26,349,473
37,444,348
700,000
1.1
24,759
19,807
6,627,136 1,000
21,187
-66,721,915
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
2015
18,611,194
1,000,000
122
1.5
Total
units
0
-24,500,000
-28,791,6082,046,266 -3,000,0001,898,458 -40,000,000

1,875,322 -40,000,000
2,798,474 -2,388,388-143,547
17 July 10TotalF Green email:

discount
2011 rate for investment
2012 in gold is 8% Real.2013The base date is 1 July
2014 2011
0
0
208
411
428
0% Real
0
0
Discount Rate
8% 600,000
0.0
0.0
0.0
1.3
Discount Factor
0.96 25,080
0
0
0
25%
0
24,794,226
-2,798,474
600,000
1,000,000
1,000,000
1,000,000
700,000
0
17 July 10 F Green email: discount rate for investment in gold is0 8% Real. The base 0date is 1 July 2011 0
0.0 Cashlows 0.0
0.0
1.3
1.5
1.6
1.7
1.1
0.0
Discount Rate
% Real
8% 0
8% 25,080
8% 48,232
8% 51,447
8% 54,662
8% 24,759
8% 0
8%
0
0
- Alternative
0 41,158
0 43,730
0 19,807 16,268,224
Discount Factor
0.96 A 0A$ Real 0.89 18,810 162,090,032
0.82 38,585
0.76
0.71
0.65
0.61 0 35,823,587
0.56
0
0
1,000Cashstream 2: Capital
1,000 Costs - Alternative
1,000AA$ Real
1,000 98,000,000 1,000
3,000,000 1,000 40,000,000 1,000 40,000,000 1,000 6,000,000 1,000 6,000,000
0
0
0
17,725
37,444
41,009
43,581
21,187
1,143
Cashstream 3: Operating Costs - AlternativeA$AReal 16,268,224 103,600,000
0 40,716,154 6,627,136
0 43,370,073 11,208,214
0 23,027,861 11,973,232
14,900,0002,884,133 22,500,000
-32,998,987
4,281,912
0 -37,833,798 0 -2,886,751 0 -35,638,906
35,823,587 -1,824,407
-3,000,000Cashstream 4:-40,000,000
-6,000,000 -10,718,360
-6,000,000 -73,349,051
0 -43,540,468
A$
-2,886,751
-71,524,643
Taxes - Alternative
A-40,000,000A$ Real-38,525,657
0 -2,000,000 -66,721,915
0 -1,000,000 -55,513,701
0
-2,243,387 0 -39,258,557
-2,046,266
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
Total
18,200,000
374,443
-8,069,033
-40,000,000
40,716,154
2,000,000
23,500,000
-1,898,458
1,000,000
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
11%
5600
10,716,624
690,889
11,427
440,400
177,251
-8,068,794
-3,000,000
35,823,587
6,000,000
22,500,000
-2,046,266
-9.4%
-37,833,798
24,500,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
-37,833,798
571
18,200,000
12,809,852
211,872
-10,034,487
0
0
0
40,000,000
0
0
2,884,133
23,500,000
0
0
0
40,000,000
0
0
Discount Rate
% Real
8%
Discount Factor
0.96
583
24,500,000
26,349,473
435,815
-7,703,789
1,620,900
Cashstream 4: Taxes
-41,130,868
Government Royaties

Income Tax
Income tax payment
results &
key
inputs
IRR - Alternative A
1000
21,187,237
22,500,000
State Royalty
Assessable Income
Intro &
Audit
1000
43,581,499
30
0
1,456,856
27%
16,268,224
26,349,473

Estimates
new technology."
waste1.0%
to be mined. 1.0%
State Royalty
%25ofMay
revenue
0.0% Cost Estimate:
1.0%IndicativeInitial
1.0%forCosts
1.0%There isA$noReal
1.0%
Capital
83,000,000
3,000,000
4
State Royalty
A$mining
Real cost per tonne 1,620,900 A$ Real/ tonne
0 ore Ongoing 25Capital
0 Costs
0
374,443
410,092
A$ Real177,251
15,000,000
mining cost
A$ Real
21,600,000
2,400,000
A$ Real A
98,000,000
3,000,000
A$ Real/ tonne ore Cashstream
75 2: Capital Costs - Alternative
15
Company Income Tax processing cost
A$ Real
64,500,000
9,000,000
2 June 10 R Torply: Company Income tax rate
30%. The cash payment averages mid
year. Assume operating
cost cashstream approximates
cost of goods sold.
fixediscosts
A$ Real
3,500,000
Tax17,500,000
deductions
for CapitaltheExpenditure
Gold Revenue
162,090,032
0
0
0
17,725,080
37,444,348
41,009,152
Real A 3 May
103,600,000
0 is deducted in proportion
0
11 E Hermi Assume all capital
to the gold0sold over the life14,900,000
of mine.
less
Tax Deduction
% of contained
792
Cashstream 3: Operating Costs - AlternativecostA per ounce
103,600,000 A$/ounce Real
0
0 for Capital Expenditure
0
14,900,000gold 22,500,000
23,500,000
Tax deduction
98,000,000
98,000,000
0
0 for capital expenditure
0
10,716,624
22,638,938
24,794,226
1000
41,009,152
0
0
3,000,000
0
0
Cashstream 4: Taxes
Government Royaties
State Royalty
% of revenue
State Royalty
A$ Real
As the evaluation proceeds there may be multiple worksheets

for production, for pricing, for opex, etc
1000
37,444,348
0
162,090,032
1000
98,000,000
103,600,000
1,142,716
-10,718,360
0
0
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000

Debtors
days
Debtors - Closing
A$ Real
cost per ounce
Data for Graphs
Cashlows

A$AReal
A$ Real
2019

Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Revenue
700,000
1.1
24,759
80%
19,807
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96
40,000,000

Realve A
2019
1,000,000
1.7
54,662
80%
43,730
Cashlows
Cashflow and NPV

A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
2018
1,000,000
1.6
51,447
80%
41,158

1.0%
0

Income Tax
Income tax payment
2017
1,000,000
1.5
48,232
80%
38,585
98,000,000
Company Income Tax

Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794

A$AReal
2,884,133
2016
600,000
1.3
25,080
75%
18,810
Cashlows
22,500,000
22,638,938
374,443
-8,069,033
2015
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
1000
162,090,032
2014
Cashstream 4: Taxes
Government Royaties

Debtors
days
Debtors - Closing
A$ Real
2013
Life of Mine

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
30
0
40,000,000

A$ Real
A
cost per ounce
2012
Revenue
3
0
2011

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces

A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
% of contained gold
98,000,000
Total
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Revenue
units

Production
162,090

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
Sales

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment
2011
Sales

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
Revenue
2019
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
cost per ounce
Total
Sales

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
0
Tax deductions
for Capital Expenditure
98,000,000
25 May 11 G Dawson email "Operating Cost Estimate: Indicative Estimates for new technology." There isRevenue
no waste to be mined.
A$ Real/ tonne ore
25
4
23 Aug
10 ABC Company Forecast
of gold price 40,000,000
A$ Real
83,000,000
3,000,000
mining cost
A$ Real
21,600,000
2,400,000
Gold15,000,000
price Forecast
A$/ounce Real
A$ Real
A$ Real/ tonne ore
75
15
Gold98,000,000
Revenue
2: Capital64,500,000
Costs - Alternative
A$ Real A
3,000,000 A$ Real
40,000,000
processing cost
A$Cashstream
Real
9,000,000
fixed costs
A$ Real
17,500,000
3,500,000
TaxRealdeductions
Capital Expenditure
A for
103,600,000
0
0
Debtors 0
days 14,900,000
cost per ounce
A$/ounce
3 May 11 EReal
Hermi Assume all capital is deducted in proportion toDebtors
the gold- Closing
sold over the life of mine. A$ Real 792
Cashstream
A$ RealA
98,000,000 1: Revenue - Alternative
3
0
162,090
0
1000
0
41,009,152
0
30
27%
3,077,618
3
26,349,473
2018
1,000,000
1.7
1000
54,662
1,142,716
80%
43,730
30
2011
3,370,615
30
25%
1,456,856
3
24,794,226
1,000,000
1.6
1000
51,447
21,187,237
80%
41,158
0
1,000,000
1000
1,000,000
37,444,348
0
Production
Revenue
3
40,716,154
0
2,000,000
1000
2,000,000
17,725,080
0
30
23%
0
0
22,638,938

units

Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090

0
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
162,090
Revenue
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
Gold price Forecast
A$/ounce
1000
1000
1000
1000
ContainedReal
gold mined 1000
ounces 1000
204,180
0
0
0
Gold Revenue
A$Processing
Real Recovery 162,090,032 % of contained
0 gold
0
0
17,725,080
37,444,348
Gold produced
ounces
162,090
0
0
0
Debtors
days
0
0
30
30
Life of Mine30
units 30
Total
Sales
Debtors - Closing
A$ Real
0
0
1,456,856
3,077,618
00
30
3
3
A$GoldRealinAcircuit
162,090,032 weeks
16,268,224
35,823,587
Gold in circuit
ounces
0
0
0
Production
Gold sold
ounces
162,090
0
0
tonnes
4,300,000
10 Aug 11 G Dawson email "Capital Cost Estimate: Indicative Estimates for New Technology route" Ore Production
grade
1.5
A$Revenue
Real
83,000,000
3,000,000 Head40,000,000
40,000,000 grams/tonne
Aug 10 ABC Company Forecast
ounces6,000,000
204,180
A$23 Real
15,000,000of gold price
6,000,000
Real Processing
1000Recovery 40,000,000
1000 % of contained
1000 gold 6,000,000
1000
A$GoldRealprice Forecast
A
98,000,000 A$/ounce
3,000,000
40,000,000
6,000,000
Gold Revenue
A$ Real
0
0
Gold162,090,032
produced
ounces 0
162,090

1,000,000
1.7
54,662
80%
43,730
Life of Mine
Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Total
3
Cashstream 1: Production and0 Revenue
Production
Life of Mine
Production

Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
accounting
24
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Life of Mine
Life of Mine
units
2011
Total
2012
2013
2014
2015
2016
2017
2018
Life of Mine
2019
units
2011
Total
2013
2014
2015
2016
2017
2018
2019
2012
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
Sales
Life of Mine
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
units
0
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
700,000
1.1
24,759
80%
19,807
2011
Total
2012
2013
2014
2015
2016
2017
2018
2019
2011
2012
2013
2014
2015
2016
2017
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
600,000
1.3
1000
25,080
41,009,152
75%
18,810
Sales
3 May 11 E Hermi Assume all capital is deducted

the life of mine.
Debtorsin proportion to the gold sold over days
0
0
30
23 Aug 11 J Gomachie: "Sales Plan: July 2011" 11%
Tax Deduction for Capital Expenditure %Debtors
of contained
- Closinggold
A$ Real
0
Gold in circuit
weeks10,716,624
98,000,000
Gold162,090,032
in circuit
ounces 0
A$ RealA
Gold sold
ounces
1,000,000
1.5
1000
48,232
43,581,499
80%
38,585
30
2012
3,582,041
30
2013
1,741,417
30
2014
3
43,370,073
3
23,027,861
3
2,884,133
1,085
17,725
2,226
37,444
2,374
41,009
2,523
43,581
700,000
1.1
24,759
80%
19,807
2015
3
1,143
21,187
600,000
1.3
25,080
1000
75%
0
43,581,499
18,810
30
13%
3,370,615
3
12,809,852
1,000,000
1.5
48,232
1000
80%
21,187,237
38,585
30
1%
3,582,041
3
690,889
30
1,741,417
3
0
16,268,224
0
35,823,587
0
40,716,154
1,085
43,370,073
2,226
23,027,861
17,725
37,444
4
40,000,000
4,000,000
1000
15
162,090,032
40,000,000
15,000,000
3,500,000
5
5,000,000
1000
6,000,000
15
0
6,000,000
15,000,000
6
6,000,000
1000
6,000,000
15
0
6,000,000
15,000,000
6
4,200,000
1000
2,000,000
15
0
2,000,000
10,500,000
0
1000
1,000,000
17,725,080
1,000,000
0
3,500,000
3,500,000
3,500,000
22,500,000
0
23,500,000
0
24,500,000
30
18,200,000
30
583
571
11%
10,716,624
5600
23%
0
22,638,938
9190
25%
0
24,794,226
162,090

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
162,090,032
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032
1000
0
1000
0
1000
0
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0

A$ RealA
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
2019
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
40,000,000

A$ Real A
40,000,000
40,000,000
1000
17,725,080
98,000,000
3,000,000
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
2016
2017
2018
6,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
1,143
103,600,000
A$/ounce Real
Cashstream
1,000,000 4: Taxes
1,000,000
Government Royaties
1.6
51,447
1000
80%
700,000
1.1
24,759
80%
19,807
1.7
54,662
80%

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
Company
Tax
1,142,716
41,158 Income43,730
1.0%
0
1.0%
0
1.0%
0
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
30
0
3
3
2,523
43,581
2,374
2,884,133
41,009
3
1,143
21,187
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
1000
37,444,348
0
1000
41,009,152
0
1000
43,581,499
3 0.0%
-12,339,260
0
-12,339,260
1,143
-10,718,360
30
0
1,456,856
27%
30
3,077,618
13%
16,268,224
26,349,473
35,823,587
12,809,852
IRR - Alternative A
30
Discounting
3,370,615
30
3,582,041
1000
21,187,237
A$ Real
162,090,032
1000
98,000,000
103,600,000
1,142,716
-10,718,360
1%
40,716,154
690,889
43,370,073
-28,791,608
30
1,741,417
23,027,861
A$ Real
A$
NPV - Alternative A
A$
2012
2013
2014
2015
2016
2017
2018
2019
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
3
0
162,090
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032

Debtors
days
Debtors - Closing
A$ Real

A$ Real
A
162,090,032
1000
0
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
3
0
3
0
0
162,090
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
40,000,000
40,000,000
40,000,000
98,000,000
6,000,000
3,000,000
1000
0
1000
0
1000
0
30
0
1000
17,725,080
30
0
30
1,456,856
1000
37,444,348
30
3,077,618
1000
41,009,152
30
3,370,615
1000
43,581,499
30
3,582,041
1000
21,187,237
30
1,741,417
1000
1,142,716
30
0
41,009,152
43,581,499
21,187,237
1,142,716
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861

Alternative
Real
A
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
103,600,000
A$/ounce Real
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
30.0%
132,120
132,120
30
0
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
-9.4%
2,884,133
-37,833,798
-2,886,751
-2,886,751

A$AReal
A$ Real
A$ Real
IRR - Alternative A
40,000,000
3,000,000

6,000,000
6,000,000
2,000,000
1,000,000
6,000,000
6,000,000
2,000,000
1,000,000
NPV - Alternative A
0.0%
-12,339,260
-12,339,260
1.0%
0
30.0%
0
0
1.0%
0
30.0%
0
0
1.0%
211,872
1.0%
11,427
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
-2,420,638
-2,420,638
1.0%
177,251
30.0%
-2,420,710
-2,420,710
1.0%
374,443
30.0%
-2,308,550
-2,308,550
1.0%
410,092
30.0%
-2,311,137
-2,311,137
1.0%
435,815
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120

98,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
units
2011
Total
2012
2013
2014
2015
2016
2017
2018
2019

Production
162,090
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
600,000
1.3
25,080
75%
18,810
1,000,000
1.5
48,232
80%
38,585
1,000,000
1.6
51,447
80%
41,158
1,000,000
1.7
54,662
80%
43,730
700,000
1.1
24,759
80%
19,807
0
0
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,226
37,444
3
2,374
41,009
3
2,523
43,581
3
1,143
21,187
3
0
1,143
1000
162,090,032
1000
0
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716

Debtors
days
Debtors - Closing
A$ Real
30
0
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0

A$ Real
A
162,090,032
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
40,000,000
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
162,090
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000

A$ Real
A
1000
162,090,032
1000
0

Debtors
days
Debtors - Closing
A$ Real

A$ RealA
162,090,032
1000
0
1000
0
1000
17,725,080
1000
37,444,348
1000
41,009,152
1000
43,581,499
1000
21,187,237
1000
1,142,716
40,000,000
6,000,000
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
103,600,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
0.0%
1,620,900
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
98,000,000
3,000,000
40,000,000
6,000,000
2,000,000
1,000,000
13%
12,809,852
1%
690,889

% of contained gold
98,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
30
0
30
1,456,856
30
3,077,618
30
3,370,615
30
3,582,041
30
1,741,417
30
0
16,268,224
35,823,587
40,716,154
43,370,073
23,027,861
2,884,133
A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
40,000,000
30
0
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000

A$ Real A
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
11%
10,716,624
23%
22,638,938
25%
24,794,226
27%
26,349,473
13%
12,809,852
1%
690,889
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

Alternative
Real
A
cost per ounce
A$/ounce Real
0
0
Cashstream 4: Taxes
Government Royaties
98,000,000
3,000,000

State Royalty
% of revenue
State Royalty
A$ Real
40,000,000
Company Income Tax

Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment

A$A
Real
37,444,348
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
Cashflow and NPV

A$ Real
A$ Real
A$AReal
A$ Real
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585

Alternative
Real
A
cost per ounce
-37,833,798
A$
-37,833,798
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment
A$ Real
IRR - Alternative A
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
9,369,853
17,114,612
19,745,395
23,027,861
0
18,200,000
-2,798,474
7,626,335
2,884,133
0
0
143,547
2,740,585
-9.4%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96

NPV - Alternative A
1.0%
374,443
1.0%
410,092
1.0%
435,815
1.0%
211,872
1.0%
11,427
Company Income Tax
8%
0.52
-2,886,751
-2,886,751
A$ Real
A$
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
Data for Graphs

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
-9.4%
A$ Real
A$
units
103,600,000
A$/ounce Real
Cashstream 4: Taxes
Government Royaties
Data for Graphs

Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
700,000
1.1
24,759
80%
19,807
Revenue
2019
1,000,000
1.7
54,662
80%
43,730
Cashlows
Discounting
40,000,000
40,000,000
98,000,000
2018
1,000,000
1.6
51,447
80%
41,158

1.0%
0

Income Tax
Income tax payment
Discount Rate
% Real
8%
Discount Factor
0.96
40,000,000

Realve A
2017
1,000,000
1.5
48,232
80%
38,585
98,000,000
Cashflow and NPV

A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
2016
600,000
1.3
25,080
75%
18,810
Company Income Tax

Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
2015

A$AReal
2,884,133
2014
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
1000
162,090,032
2013
Revenue
Cashstream 4: Taxes
Government Royaties

Debtors
days
Debtors - Closing
A$ Real
2012
Life of Mine

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
30
0
40,000,000

A$ Real
A
cost per ounce
2011

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces

A$ Real
83,000,000
3,000,000
A$ Real
15,000,000
% of contained gold
98,000,000
Total
Sales
Revenue
units

Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090

37,444,348
22,500,000
22,638,938
374,443
-8,069,033
30.0%
0
0
Discount Rate
% Real
8%
Discount Factor
0.96
2011
Cashlows
Cashflow and NPV

A$AReal
A$ Real
Total

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
Sales

Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
Income Tax
Income tax payment
600,000
1.3
25,080
75%
18,810
Revenue
2019
A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
0 3: Operating Costs - A$Alternative

Cashstream
Real
A
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090

Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
0
Tax deductions
for Capital Expenditure
98,000,000
cost per ounce
units
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
Cashlows

Estimates
new technology."
waste1.0%
to be mined. 1.0%
State Royalty
%25ofMay
revenue
0.0% Cost Estimate:
1.0%IndicativeInitial
1.0%forCosts
1.0%There isA$noReal
1.0%
Capital
83,000,000
3,000,000
4
State Royalty
A$mining
Real cost per tonne 1,620,900 A$ Real/ tonne
0 ore Ongoing 25Capital
0 Costs
0
374,443
410,092
A$ Real177,251
15,000,000
mining cost
A$ Real
21,600,000
2,400,000
A$ Real A
98,000,000
3,000,000
A$ Real/ tonne ore Cashstream
75 2: Capital Costs - Alternative
15
Company Income Tax processing cost
A$ Real
64,500,000
9,000,000
2 June 10 R Torply: Company Income tax rate
30%. The cash payment averages mid
year. Assume operating
cost cashstream approximates
cost of goods sold.
fixediscosts
A$ Real
3,500,000
Tax17,500,000
deductions
for CapitaltheExpenditure
Gold Revenue
162,090,032
0
0
0
17,725,080
37,444,348
41,009,152
Real A 3 May
103,600,000
0 is deducted in proportion
0
11 E Hermi Assume all capital
to the gold0sold over the life14,900,000
of mine.
less
Tax Deduction
% of contained
792
Cashstream 3: Operating Costs - AlternativecostA per ounce
103,600,000 A$/ounce Real
0
0 for Capital Expenditure
0
14,900,000gold 22,500,000
23,500,000
Tax deduction
98,000,000
98,000,000
0
0 for capital expenditure
0
10,716,624
22,638,938
24,794,226
3
0
0

Debtors
days
Debtors - Closing
A$ Real
25 May 11 G Dawson email "Operating Cost Estimate: Indicative Estimates for new technology." There isRevenue
no waste to be mined.
A$ Real/ tonne ore
25
4
23 Aug
10 ABC Company Forecast
of gold price 40,000,000
A$ Real
83,000,000
3,000,000
mining cost
A$ Real
21,600,000
2,400,000
Gold15,000,000
price Forecast
A$/ounce Real
A$ Real
A$ Real/ tonne ore
75
15
Gold98,000,000
Revenue
2: Capital64,500,000
Costs - Alternative
A$ Real A
3,000,000 A$ Real
40,000,000
processing cost
A$Cashstream
Real
9,000,000
fixed costs
A$ Real
17,500,000
3,500,000
TaxRealdeductions
Capital Expenditure
A for
103,600,000
0
0
Debtors 0
days 14,900,000
cost per ounce
A$/ounce
3 May 11 EReal
Hermi Assume all capital is deducted in proportion toDebtors
the gold- Closing
sold over the life of mine. A$ Real 792
Cashstream
A$ RealA
98,000,000 1: Revenue - Alternative
3
0
162,090
0
1000
0
41,009,152
0
30
27%
3,077,618
3
26,349,473
2018
1,000,000
1.7
1000
54,662
1,142,716
80%
43,730
30
2011
3,370,615
30
25%
1,456,856
3
24,794,226
1,000,000
1.6
1000
51,447
21,187,237
80%
41,158
0
1,000,000
1000
1,000,000
37,444,348
0
Production
Revenue
3
40,716,154
0
2,000,000
1000
2,000,000
17,725,080
0
30
23%
0
0
22,638,938

Life of Mine
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090

0
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
3
0
0

1,000,000
1.7
54,662
80%
43,730
162,090
Revenue
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
Gold price Forecast
A$/ounce
1000
1000
1000
1000
ContainedReal
gold mined 1000
ounces 1000
204,180
0
0
0
Gold Revenue
A$Processing
Real Recovery 162,090,032 % of contained
0 gold
0
0
17,725,080
37,444,348
Gold produced
ounces
162,090
0
0
0
Debtors
days
0
0
30
30
Life of Mine30
units 30
Total
Sales
Debtors - Closing
A$ Real
0
0
1,456,856
3,077,618
00
30
3
3
A$GoldRealinAcircuit
162,090,032 weeks
16,268,224
35,823,587
Gold in circuit
ounces
0
0
0
Production
Gold sold
ounces
162,090
0
0
tonnes
4,300,000
10 Aug 11 G Dawson email "Capital Cost Estimate: Indicative Estimates for New Technology route" Ore Production
grade
1.5
A$Revenue
Real
83,000,000
3,000,000 Head40,000,000
40,000,000 grams/tonne
Aug 10 ABC Company Forecast
ounces6,000,000
204,180
A$23 Real
15,000,000of gold price
6,000,000
Real Processing
1000Recovery 40,000,000
1000 % of contained
1000 gold 6,000,000
1000
A$GoldRealprice Forecast
A
98,000,000 A$/ounce
3,000,000
40,000,000
6,000,000
Gold Revenue
A$ Real
0
0
Gold162,090,032
produced
ounces 0
162,090
Cashstream 4: Taxes
Government Royaties
units
Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
Total
3
Cashstream 1: Production and0 Revenue
Production
Life of Mine
Production

Production
Ore Production
tonnes
4,300,000
Head grade
grams/tonne
1.5
ounces
204,180
Processing Recovery
% of contained gold
Gold produced
ounces
162,090
37,444,348
22,500,000
22,638,938
374,443
-8,069,033
41,009,152
23,500,000
24,794,226
410,092
-7,695,166
43,581,499
21,187,237
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
1,142,716
0
690,889
11,427
440,400
0.0%
-12,339,260
-12,339,260
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-10,718,360
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
Cashflow and NPV
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Cashlows
A$AReal
A$ Real
A$ Real
IRR - Alternative A
7,626,335
2,740,585
-9.4%
Discounting
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
-37,833,798
Discount Rate
% Real
8%
Discount Factor
0.96

A$ Real/ tonne ore
25
mining cost
A$ Real
21,600,000
A$ Real/ tonne ore
75
processing cost
A$ Real
64,500,000
fixed costs
A$ Real
17,500,000
A$ Real
A$
-37,833,798
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
The computations may become long, detailed and complex but the whole layout
across the workbook,
and down each worksheet
will be intuitive and easy to follow
Like reading a story book!
1.0%
40,000,000
4
435,815
4,000,000
40,000,000
15
15,000,000
3,500,000
43,581,499
1.0%
40,000,000
5
211,872
5,000,000
40,000,000
15
15,000,000
3,500,000
21,187,237
1.0%
6
11,427
6,000,000
6,000,000
6
6,000,000
4,200,000
6,000,000
15
6,000,000
15
15,000,000
3,500,000
1,142,716
10,500,000
3,500,000
1,000,000
1,000,000
units
24,500,000
18,200,000
571
18,200,000
12,809,852
211,872
-10,034,487
11%
5600
10,716,624
690,889
11,427
440,400
23%
919
22,638,938
25 May30.0%
to be mined. 30.0%
%2 ofJuneassessable
income
30.0%paid monthly
30.0% Cost Estimate:
30.0%Indicative Estimates
30.0%for new technology."
30.0%There is no waste30.0%
11 R Torply:
SA State 0.0%
Royalty is 1% of revenue
mining 0.0%
cost0 per tonne 1.0%
A$ Real/
tonne ore -2,420,710
25
-12,339,260 % of revenue
0
0
-2,420,638
-2,308,550
-2,311,137
-3,010,346
State Royalty
1.0%
1.0%
1.0%
1.0%
1.0%
mining1,620,900
cost0
A$ Real-2,420,638
21,600,000
-12,339,260 A$ Real 0
-2,420,710
-2,308,550
-2,311,137
-3,010,346
State Royalty
0
0
0
177,251
374,443
410,092
A$ Real/ tonne ore
75
processing cost
A$ Real
Cashstream 4: Taxes - AlternativeA$Company
AReal Income-10,718,360
0
0
0
-2,243,387 64,500,000
-2,046,266
-1,898,458
-1,875,322
-2,798,474
Tax
fixed costs
A$ Real
17,500,000
Real A 103,600,000
0
0
0
Gold Revenue
162,090,032
0
0
0
17,725,080
37,444,348
41,009,152
cost per ounce
A$/ounce Real
less
30.0%
4
132,120
1.0%
2,400,000
132,120
435,815
15
9,000,000
143,547
3,500,000
4
1.0%
4,000,000
211,872
15
15,000,000
3,500,000
5
1.0%
5,000,000
11,427
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
560
919
24,500,000
26,349,473
2,884,133
435,815
0
-7,703,789
0
143,547
30.0%
1.0%
-2,311,137
177,251
2,740,585
-2,311,137
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
0
0
0
0
0
0
177,251
-8,068,794
374,443
-8,069,033
410,092
-7,695,166
Cashflow and NPV
Cashlows

103,600,000
0
0
0
98,000,000 4: Taxes0
0
0
Cashstream
162,090,032
0
0
0
16,268,224
35,823,587
State Royalty
1,620,900
0
0
0
98,000,000
3,000,000 Government
40,000,000
40,000,000
6,000,000
6,000,000
Assessable Income
-41,130,868 Royaties0
0
0
103,600,000
0
0 is 1% of revenue
14,900,000
2 June 11 R0 Torply: SA State Royalty
paid monthly 22,500,000
Cashstream 4: Taxes - Alternative A A$Company
Real Income Tax Rate
-10,718,360 % of assessable
0 incomeState Royalty
0
-2,243,387
-2,046,266
0.0%0
30.0%
30.0%
30.0%
% of revenue
0.0%
0
0
0
Royalty
A$ Real-2,388,388
1,620,900
Cashflow - Alternative A A$Income
Real Tax
-28,791,608
-3,000,000 State-12,339,260
-40,000,000
-40,000,000
9,369,853
Income tax payment
-12,339,260
0
0
0
IRR - Alternative A
14,900,000
10,716,624
40,716,154
177,251
2,000,000
-8,068,794
23,500,000
-1,898,458
30.0%
1.0%
-2,420,638
0
17,114,612
-2,420,638
22,500,000
22,638,938
43,370,073
374,443
1,000,000
-8,069,033
24,500,000
-1,875,322
30.0%
1.0%
-2,420,710
0
19,745,395
-2,420,710
23,500,000
24,794,226
23,027,861
410,092
0
-7,695,166
18,200,000
-2,798,474
30.0%
1.0%
-2,308,550
0
7,626,335
-2,308,550
43,581,499
792
21,187,237
583
30.0%
1.0%
-3,010,346
374,443
-3,010,346
Company Income Tax
-9.4%
-10,718,360
0
0
0
-2,243,387
-2,046,266
-1,898,458
-1,875,322
Gold Revenue
162,090,032
0
0
0
17,725,080
less
17 July 10 F Green email: discount rate for investment in gold is 8% Real. The base date is 1 July 2011 Cashstream 3: Operating Costs - Alternative A
103,600,000
0
0
0
14,900,000
Discount Rate
% Real
8%
8% for capital expenditure
8%
8%
8%
8%0
8%0
8%0
8%
Tax deduction
98,000,000
10,716,624
Cashlows
Discount Factor
0.96
0.89
0.82
0.76
0.71
0.65
0.61
0.56
0.52
State Royalty
1,620,900
0
0
0
177,251
162,090,032
0
0
0
16,268,224
35,823,587
40,716,154
43,370,073
Assessable Income
-41,130,868
0
0
0
-8,068,794
- Alternative AA$ Real-2,886,751
98,000,000
3,000,000
40,000,000
40,000,000
6,000,000
6,000,000
2,000,000
1,000,000
Discounted Cashflow - Alternative A A$Cashstream
Real 2: Capital Costs-37,833,798
-35,638,906
-32,998,987
-1,824,407
6,627,136
11,208,214
11,973,232
4,281,912
1,424,759
103,600,000
0
0 income -66,721,915
14,900,000
22,500,000
23,500,000
24,500,000
A$Cashstream 3: Operating Costs - AlternativeA$AReal-2,886,751 Company
-38,525,657
-73,349,051
-55,513,701
-43,540,468
-39,258,557
-37,833,798
Income Tax Rate-71,524,643
% of assessable
0.0%0
30.0%
30.0%
30.0%
30.0%
Income
Tax
-12,339,260
0
0
0
-2,420,638
A A$ Real
-10,718,360
0
0
0
-2,243,387
-2,046,266
-1,898,458
-1,875,322
NPV - Alternative A
A$Cashstream 4: Taxes - Alternative
-37,833,798
Income
tax payment -3,000,000
0
0
0
-2,420,638
Cashflow - Alternative A A$ Real
-28,791,608
-40,000,000 -12,339,260
-40,000,000 -2,388,388
9,369,853
17,114,612
19,745,395
Discounting
Cashflow and NPV
Cashstream
-9.4% 4: Taxes - AlternativeA$AReal
IRR - Alternative A
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
Discounting
units
Total
Cashflow
2012 and NPV
2013
2011
2014
-10,718,360
-2,243,387
2015
2016
2017
2018
2019
NPV - Alternative A
Data for Graphs
-103,600,000
A$
103,600,000
units
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
Cashflow
- Alternative
A
-37,833,798
0
0
40,000,000
IRR - Alternative
-40,000,000 A
-35,638,906
-38,525,657
Discounting
0
0A$ Real
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
-22,500,000
-23,500,000
9,369,853
0
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
0
1,000A$ Real
0
0A$
-3,000,000
A$
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751

NPV - Alternative
A
-103,600,000
Data for Graphs

Life of Mine
Ore Production 103,600,000
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashstream 4: Ta
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
-9.4% 9,369,853
6,627,136
-66,721,915
589
22,048,812
2015
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
-18,200,000
2016
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
2017
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
2018
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
2019
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
cost per ounce
103,600,000
A$/ounce Real
NPV - Alternative A
4
2,400,000
15
9,000,000
3,500,000
4
4,000,000
15
15,000,000
3,500,000
5
5,000,000
15
15,000,000
3,500,000
6
6,000,000
15
15,000,000
3,500,000
6
4,200,000
15
10,500,000
3,500,000
14,900,000
22,500,000
23,500,000
24,500,000
18,200,000
792
583
571
560
919
1.0%
0
1.0%
0
1.0%
0
1.0%
177,251
1.0%
374,443
1.0%
410,092
1.0%
435,815
37,444,348
A$
-37,833,798
units
Total
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
1.0%
211,872
1.0%
11,427
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Company Income Tax
22,500,000
22,638,938
374,443
23,027,861
-8,069,033
0
18,200,000
30.0%
-2,420,710
-2,798,474
-2,420,710
7,626,335
23,500,000
24,794,226
410,092
2,884,133
-7,695,166
0
0
30.0%
-2,308,550
143,547
-2,308,550
2,740,585
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
23,500,000
1,424,759
-37,833,798
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
2018
2019
8%
0.61
8%
0.56
8%
0.52
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798

Income Tax
Income tax payment

-12,339,260
-12,339,260
-10,718,360
41,009,152
43,581,499
21,187,237
1,142,716
22,500,000
22,638,938
374,443
-8,069,033
23,500,000
24,794,226
410,092
-7,695,166
24,500,000
26,349,473
435,815
-7,703,789
18,200,000
12,809,852
211,872
-10,034,487
0
690,889
11,427
440,400
30.0%
0
0
30.0%
0
0
30.0%
0
0
30.0%
-2,420,638
-2,420,638
30.0%
-2,420,710
-2,420,710
30.0%
-2,308,550
-2,308,550
30.0%
-2,311,137
-2,311,137
30.0%
-3,010,346
-3,010,346
30.0%
132,120
132,120
-2,243,387
-2,046,266
-1,898,458
-1,875,322
-2,798,474
143,547
Cashflow and NPV
Cashlows

162,090,032
98,000,000
103,600,000
-10,718,360
0
3,000,000
0
0
0
40,000,000
0
0
0
40,000,000
0
0
16,268,224
6,000,000
14,900,000
-2,243,387
35,823,587
6,000,000
22,500,000
-2,046,266
40,716,154
2,000,000
23,500,000
-1,898,458
43,370,073
1,000,000
24,500,000
-1,875,322
23,027,861
0
18,200,000
-2,798,474
2,884,133
0
0
143,547
-28,791,608
-3,000,000
-40,000,000
-40,000,000
-2,388,388
9,369,853
17,114,612
19,745,395
7,626,335
2,740,585
A$ Real
IRR - Alternative A
-9.4%
Discounting
-103,600,000
0
0
1,000
0
0
-40,000,000
0
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
production,
sales,
revenue
2017
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
Gold Revenue
162,090,032
0
0
0
17,725,080
less
103,600,000
0
0
0
14,900,000
98,000,000
0
0
0
10,716,624
State Royalty
1,620,900
0
0
0
177,251
Assessable Income
-41,130,868
0
0
0
-8,068,794
1.0%
11,427
0
0
1,000
0
0
-40,000,000
0
43,730
2016
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411

State Royalty
% of revenue
0.0%
State Royalty
A$ Real
1,620,900
1,142,716
0
0
1,000
0
0
-3,000,000
0
41,158
2015
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1.0%
211,872
38,585
2014
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
21,187,237
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
2014
24,442,972
600,000
439
1.3
18,810
-2,886,751 1,000 -35,638,906 1,000 -32,998,987 1,000 -1,824,407 1,000

17,725
37,444
41,009
43,581
-2,886,75116,268,224 -38,525,657
35,823,587 -71,524,643
40,716,154 -73,349,051
43,370,073
2013
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
Cashstream 4: Taxes
Government Royaties
1.0%
435,815
8%
40,716,154
0.52
2,000,000
2012
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
103,600,000
43,581,499
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
2013
23,452,8580
428
0.0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
8% 1,000,000
1.7
0.76 54,662
30.0%
1.0%
132,120
410,092
132,120
1%
690,889
143,547
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
2012
22,048,8120
411
0.0
0
0
8% 1,000,000
1.6
0.82 51,447
2011
-103,600,000
13%
12,809,852
41,009,152
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
2011
14,040,3850
208
0.0
-37,833,798 1,000
-40,000,000
-37,833,798
0
8% 1,000,000
1.5
0.89 48,232
1,142,716
571
27%
26,349,473
37,444,348
700,000
1.1
24,759
19,807
6,627,136 1,000
21,187
-66,721,915
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
2015
18,611,194
1,000,000
122
1.5
Total
units
0
-24,500,000
-28,791,6082,046,266 -3,000,0001,898,458 -40,000,000

1,875,322 -40,000,000
2,798,474 -2,388,388-143,547
17 July 10TotalF Green email:

discount
2011 rate for investment
2012 in gold is 8% Real.2013The base date is 1 July
2014 2011
0
0
208
411
428
0% Real
0
0
Discount Rate
8% 600,000
0.0
0.0
0.0
1.3
Discount Factor
0.96 25,080
0
0
0
25%
0
24,794,226
-2,798,474
600,000
1,000,000
1,000,000
1,000,000
700,000
0
17 July 10 F Green email: discount rate for investment in gold is0 8% Real. The base 0date is 1 July 2011 0
0.0 Cashlows 0.0
0.0
1.3
1.5
1.6
1.7
1.1
0.0
Discount Rate
% Real
8% 0
8% 25,080
8% 48,232
8% 51,447
8% 54,662
8% 24,759
8% 0
8%
0
0
- Alternative
0 41,158
0 43,730
0 19,807 16,268,224
Discount Factor
0.96 A 0A$ Real 0.89 18,810 162,090,032
0.82 38,585
0.76
0.71
0.65
0.61 0 35,823,587
0.56
0
0
1,000Cashstream 2: Capital
1,000 Costs - Alternative
1,000AA$ Real
1,000 98,000,000 1,000
3,000,000 1,000 40,000,000 1,000 40,000,000 1,000 6,000,000 1,000 6,000,000
0
0
0
17,725
37,444
41,009
43,581
21,187
1,143
Cashstream 3: Operating Costs - AlternativeA$AReal 16,268,224 103,600,000
0 40,716,154 6,627,136
0 43,370,073 11,208,214
0 23,027,861 11,973,232
14,900,0002,884,133 22,500,000
-32,998,987
4,281,912
0 -37,833,798 0 -2,886,751 0 -35,638,906
35,823,587 -1,824,407
-3,000,000Cashstream 4:-40,000,000
-6,000,000 -10,718,360
-6,000,000 -73,349,051
0 -43,540,468
A$
-2,886,751
-71,524,643
Taxes - Alternative
A-40,000,000A$ Real-38,525,657
0 -2,000,000 -66,721,915
0 -1,000,000 -55,513,701
0
-2,243,387 0 -39,258,557
-2,046,266
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
Total
23,500,000
583
24,500,000
26,349,473
435,815
-7,703,789
1,620,900
Cashstream 4: Taxes
-41,130,868
Government Royaties

Income Tax
Income tax payment
results &
key
inputs
2,000,000
22,500,000
State Royalty
Assessable Income
Intro &
Audit
2,000,000
0
Data for Graphs
Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
8%
0.71
0
0.0
0
0
11,208,214 1,000
1,143
-55,513,7012,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
2016
1,003,779
1,000,000
122
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
8%
0.65
Discount Rate
% Real
8%
Discount Factor
0.96
A$
NPV - Alternative A
2017
2018
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
-37,833,798
A$
-37,833,798
units
Total
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
-2,886,751
-2,886,751
-35,638,906
-38,525,657
-32,998,987
-71,524,643
-1,824,407
-73,349,051
6,627,136
-66,721,915
11,208,214
-55,513,701
11,973,232
-43,540,468
4,281,912
-39,258,557
1,424,759
-37,833,798
2011
2012
2013
2014
2015
2016
2017
2018
2019
2019
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
0
0.0
0
0
1,000
1,143
2,884,133
0
0
Data for Graphs

Life of Mine
Ore Production
Head grade
Gold produced
Gold price Forecast
Gold sold
Cashflow Deficit
Cash Flow
Cost per ounce sold
Check
Pretax margin/oz
capex
www.econom ceva uat on.com.au
-103,600,000
0
0.0
0
0
1,000
0
0
-3,000,000
0
0
0
3,000,000
-3,000,000
-2,886,751
-2,886,751
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-35,638,906
-38,525,657
0
0.0
0
0
1,000
0
0
-40,000,000
0
0
0
40,000,000
-40,000,000
-32,998,987
-71,524,643
103,600,000
600,000
1.3
25,080
18,810
1,000
17,725
16,268,224
-6,000,000
-14,900,000
2,243,387
0
2,388,388
-2,388,388
-1,824,407
-73,349,051
792
14,040,385
208
1,000,000
1.5
48,232
38,585
1,000
37,444
35,823,587
-6,000,000
-22,500,000
2,046,266
9,369,853
0
9,369,853
6,627,136
-66,721,915
589
22,048,812
411
opex
1,000,000
1.6
51,447
41,158
1,000
41,009
40,716,154
-2,000,000
-23,500,000
1,898,458
17,114,612
0
17,114,612
11,208,214
-55,513,701
572
23,452,858
428
1,000,000
1.7
54,662
43,730
1,000
43,581
43,370,073
-1,000,000
-24,500,000
1,875,322
19,745,395
0
19,745,395
11,973,232
-43,540,468
561
24,442,972
439
700,000
1.1
24,759
19,807
1,000
21,187
23,027,861
0
-18,200,000
2,798,474
7,626,335
0
7,626,335
4,281,912
-39,258,557
878
18,611,194
122
0
0.0
0
0
1,000
1,143
2,884,133
0
0
-143,547
2,740,585
0
2,740,585
1,424,759
-37,833,798
878
1,003,779
122
Taxes &
govt
royalties
Cash flow
NPV, IRR,
etc
peter@econom ceva uat on.com.au
accounting
25
i.
ii.
iii.
iv.
Six principles
Four cashstreams
Worked examples
Three golden rules
26
1.
2.
3.
4.
5.
6.
Easy to follow
Tailored to purpose
Transparent
Disciplined, rigorous and consistent
Recording all sources of data
Rapid to audit
These are described on the AusIMM Website

www.ausimm.com.au/content/docs/guidelines_tech_economic_evaluation.pdf
27
Existing case
NPV - Existing Case

IRR - Existing Case
9.1%
20
20
10
10
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
-20
Cashflow Deficit
2013
2014
2015
2016
2017
2018
2019
2020
-60
600,000
6
5
4
3
2
1
0
500,000
400,000
300,000
200,000
100,000
0
2011
2012
2013
2014
2015
2016
2017
Ore Production
2018
2019
60Existing Case
Gold Ounces (000's)
Au Grams/Tonne
2012
-30
-50
1,000
20
200
2014
Life of Mine
2015
2012
2016
2017
2018
processing cost
units
2019
2013
2014
Gold sold
2011
2020
2015
2016
2017
Gold price Forecast
2018
2019
2020
Pretax margin/oz
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
A$
2013
0
2011
5,000,000
2012
400
2020
10,000,000
mining cost
1,200
600
15,000,000
2011
800
Head grade
40
20,000,000
A$
2011
-10
-20
-40
-30
Cashstream
$/ounce
-10
Existing Case - NPV
30
30
A$ M
A$M
2,007,342
A$
40
2012
2013
2014
2015
2016
2017
fixed costs
2018
2019
2020
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2,150,000
3.1
213,183
500,000
3.1
49,839
83%
41,367
500,000
3.8
61,093
83%
50,707
500,000
2.9
46,624
83%
38,698
350,000
2.8
31,511
83%
26,154
300,000
2.5
24,116
78%
18,810
175,736
3
0
3
0
0
3
0
0
3
1,085
17,725
3
2,387
40,065
3
2,925
50,169
3
2,233
39,391
3
1,509
26,878
3
0
1,509
3
0
0
1,000
0
1,000
0
1,000
0
1,000
17,725,080
1,000
40,065,236
1,000
50,168,501
1,000
39,390,613
1,000
26,877,999
1,000
1,508,904
1,000
0
30
0
30
0
30
1,456,856
30
3,293,033
30
4,123,438
30
3,237,585
30
2,209,151
30
0
30
0
16,268,224
38,229,059
49,338,096
40,276,467
27,906,433
3,718,055
Total

Production
Ore Production
tonnes
Head grade
grams/tonne
ounces
Processing Recovery
% of contained gold
Gold produced
ounces
Sales
Gold in circuit
weeks
Gold in circuit
ounces
Gold sold
ounces
175,736
Revenue
Gold price Forecast
A$/ounce Real
Gold Revenue
A$ Real
1,000
175,736,334

Debtors
days
Debtors - Closing
A$ Real
Cashstream 1: Revenue - ExistingA$Case

Real
175,736,334

A$ Real
58,000,000
A$ Real
10,000,000
3,000,000
30,000,000
25,000,000

A$ Real
Case
3,000,000
30,000,000
25,000,000
68,000,000
3,000,000
4,000,000
2,000,000
1,000,000
3,000,000
4,000,000
2,000,000
1,000,000
10%
6,858,601
23%
15,502,975
29%
19,412,366
22%
15,241,935
15%
10,400,262
1%
583,860
0%
0
5
1,500,000
20
6,000,000
3,000,000
5
2,500,000
20
10,000,000
3,000,000
6
3,000,000
20
10,000,000
3,000,000
7
3,500,000
20
10,000,000
3,000,000
8
2,800,000
20
7,000,000
3,000,000
10,500,000
15,500,000
16,000,000
16,500,000
12,800,000
558
375
316
426
489
1%
177,251
1%
400,652
1%
501,685
1%
393,906
1%
268,780
1%
15,089
1%
0
40,065,236
50,168,501
39,390,613
26,877,999
1,508,904
15,500,000
15,502,975
400,652
8,661,608
16,000,000
19,412,366
501,685
14,254,450
16,500,000
15,241,935
393,906
7,254,773
12,800,000
10,400,262
268,780
3,408,957
0
583,860
15,089
909,955
0
0
0
0

% of contained gold
68,000,000

A$ Real/ tonne ore
31
mining cost
A$ Real
13,300,000
A$ Real/ tonne ore
100
processing cost
A$ Real
43,000,000
fixed costs
A$ Real
15,000,000

A$ RealCase
cost per ounce
71,300,000
A$/ounce Real
Cashstream 4: Taxes
Government Royaties
State Royalty
% of revenue
State Royalty
A$ Real
1,757,363
1%
0
1%
0
1%
0
Company Income Tax

Gold Revenue
175,736,334
0
0
0
17,725,080
less
71,300,000
0
0
0
10,500,000
68,000,000
0
0
0
6,858,601
State Royalty
1,757,363
0
0
0
177,251
Assessable Income
34,678,971
0
0
0
189,228
Income Tax
Income tax payment
10,403,691
10,403,691
30%
0
0
30%
0
0
30%
0
0
30%
56,768
56,768
30%
2,598,483
2,598,483
30%
4,276,335
4,276,335
30%
2,176,432
2,176,432
30%
1,022,687
1,022,687
30%
272,986
272,986
30%
0
0
A$ Real
12,161,055
234,019
2,999,135
4,778,020
2,570,338
1,291,467
288,075
175,736,334
68,000,000
71,300,000
12,161,055
0
3,000,000
0
0
0
30,000,000
0
0
0
25,000,000
0
0
16,268,224
3,000,000
10,500,000
234,019
38,229,059
4,000,000
15,500,000
2,999,135
49,338,096
2,000,000
16,000,000
4,778,020
40,276,467
1,000,000
16,500,000
2,570,338
27,906,433
0
12,800,000
1,291,467
3,718,055
0
0
288,075
0
0
0
0
24,275,280
-3,000,000
-30,000,000
-25,000,000
2,534,205
15,729,924
26,560,076
20,206,129
13,814,966
3,429,979
Cashflow and NPV

Cashlows
A$ Real
Cashstream 2: Capital Costs - Existing CaseA$ Real
A$ Real
A$ Real
A$ Real
IRR - Existing Case
9.1%
Discounting
Discount Rate
% Real
8%
Discount Factor
0.96

A$ Real
A$
NPV - Existing Case
A$
2,007,342
2,007,342
-2,886,751
-2,886,751
8%
0.89
8%
0.82
8%
0.76
8%
0.71
8%
0.65
8%
0.61
8%
0.56
8%
0.52
8%
0.48
-26,729,179
-29,615,930
-20,624,367
-50,240,297
1,935,792
-48,304,505
11,125,505
-37,179,000
17,393,968
-19,785,033
12,252,613
-7,532,420
7,756,605
224,185
1,783,157
2,007,342
0
2,007,342
28
There are no template models!!!

No black box models!!!
No universal models!!!
No fixed architecture!!!
Instead there is complete freedom to create

the most appropriate model
but it MUST employ the six principles and four
cashstreams.
and it MUST flow intuitively across and down
There are worked examples that can be used as
starting models.
29
1.
People want economic models they can easily

follow and trust.
Some models will become long, complex and detailed but
they must remain intuitive and easy for others to understand
2.
People do not want sophisticated models that

employ a web of Excel functions, draw-down
menus, & clever algorithms.
If only one or two experts can use your model then most
probably it is poor workmanship
3.
The economic model is not the private

domain of the modelling specialist;
It is to be constructed for everyone else to use intuitively
30
31
32

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1a.

Start here Overview

Spend only a few seconds on most slides.

Level 3: Decision making

Level 2: Evaluating the business/project

Level 1: Hands-on economic modelling

Three levels of evaluation

Hands-on modelling practices

Level 3: Decision making

Level 2: Evaluating the business/project

Level 1: Hands-on economic modelling

Level 3: Decision making

Level 2: Evaluating the business/project

Level 1: Hands-on economic modelling

Level 3: Decision making

Level 2: Evaluating the business/project

Level 1: Hands-on economic modelling

Level 3: Decision making

Level 2: Evaluating the the business/project

Level 1: Hands-on economic modelling

Level 3: Decision making

Level 2: Evaluating the the business/project

This is the most

Level 3: Decision making

Level 3: Decision making

Level 3: Decision making

Your model may

Your task is to develop a model that anyone

Your task is to develop a model that anyone

Others must be able to confidently play with their copy.

Your task is to develop a model that anyone

If your model is sophisticated and smart so that you

the workbook layout might look like

NPV - Existing Case

Existing Case - NPV

Existing Case - Four Cash Streams

Worked Example - MetPlant 2011

-40 2: Capital Costs - Existing Case

Cashstream 3: Operating Costs - Existing Case

Discounted Cashflow - Existing Case

Cashstream 4: Taxes - Existing Case

Cumulative NPV - Existing Case

Simplified to four cash streams

Case - Sales, Price, Margin

Gold Ounces (000's)

Existing Case - Mining

Accounting can be derived from these.

Understanding the colour coding

Tonnes Ore or Ounces Gold

Gold price Forecast

Existing Case - Opex

Existing Case - Capex

Initial Capital Costs

Ongoing Capital Costs

Cashstream 1: Production and Revenue

23 Aug 11 J Gomachie: " Sales Plan: July 2011"

Cashstream 1: Revenue - ExistingA$