New High by Year-End?

I can't make the figures agree. After reading this RNS, I have placed my calculations below.

RNS Number:4387ECambridge Mineral Resources PLC02 December 20022 December 2002 Cambridge Mineral Resources plc SRK Conceptual Mining Study Upgrades Lomero-Poyatos Project Economics* Projected Internal Rate of Return of 70% and Net Present Value in excess of Euro30 million* Cash operating costs estimated at US$ 211 per ounce gold equivalent* Projected net profits in excess of Euro8.3 million per annum with production planned to commence in 2005Cambridge Mineral Resources plc ('Cambridge') is pleased to announce an upgradedConceptual Mining Study compiled by independent consultants, SRK ConsultingLimited ('SRK'), in respect of the Lomero-Poyatos polymetallic project, locatedin the Iberian Pyrite Belt in Southern Spain.The SRK analysis of the Lomero-Poyatos project, containing an Inferred andIndicated gold resource of 2.1 million ounces and other metals, concludes thatthe project provides robust economic indicators. The study estimates that theproject will provide an Internal Rate of Return of 70% and a Net Present Valuein excess of Euro30 million using a conservative discount rate of 15%.The economic model incorporates current precious and base-metal prices, creditsfor the sale of industrial by-products, locally established operating costs andmetallurgical recoveries based upon processing test work to date. The study isbased on initial production of 350,000 tonnes of ore per year utilising locallyavailable processing plant, with the potential to increase mine outputsignificantly to 1 million tonnes per year upon expansion of the facilities.The projected capital payback period is two years on initial capital expenditureof Euro15.3 million with cash operating costs per ounce gold equivalent estimatedatUS$ 211/oz. Net profits are demonstrated to be in excess of Euro8.3 million perannum with an open pit mine life of a minimum of 8 years.


I may have calculated incorrectly, but this is what I make of the figures:-

2.1 Mill Ozs of gold

operating costs per ounce gold equivalent estimated
at US$ 211/oz.

Price of gold is approx US$ 345/oz

Therefore Profit per Oz = US$ 134 = £83 Sterling

£83 x 2.1 mill Ozs = £174,000,000

= £2.70 per share ( Good !)


Yet - report sates :-

Projected net profits in excess of Euro8.3 million (£5.2 Mil) per annum with
production planned to commence in 2005



£5.2 mill Pounds p.a. = only 8p/share ( Not so good!)


What have I done wrong???