The new PA shows an aftertax net present value of $231 million US, at these gold and silver prices. Currently, the market cap of this company is $66 million US (68 million shares outstanding, x current share price of 97 cents.) Divide 231 mil into 66 mil and we get 3.5. This is the multiplier which defines how much Kimber is undervalued. Multiply 3.5 times the current share price (.97) and we get $3.40. The stock price of Kimber (fair value) should be well over $3. You can buy if for less than a third of net present value! Even if gold prices go down to the bear base case of $875, Kimber's NPV is still worth 27% more than the current stock price would lead you to believe.

Any takers?