Good stuff JJ.

I would suggest making the "base line" scenario a bit more conservative in terms of the POG.

Gold @ $1,200 is near an all time record high. I'd probably use something more like $1,000.

I'd also factor in production reaching the "optimal" rate in about Year Three. KRY's management could provide guidelines here. Mercator's Mineral Park copper/moly mine in AZ starting out at 25K tons and increased to 50K tons in about this same time scale. So I use cash flow of about half what you think for at least the first year, possibly the first two years of production. And then grow it out progressively to reaching the 500K peak rate.

The key thing to remember is that this is but one scenario of a future no one can predict.

Once you get a 'conservative' base line scenario, then copy it over and create new scenarios with different assumptions ranging from say $750/ounce gold to perhaps $1,500. And then different P/E multiples. And different production scenarios.

The idea is to get a range of scenarios that plays with the key input assumptions.

If you like what you're seeing at the more conservative possibilities, it gives one confidence in terms of market volatility and market irrationality. Which will most likely be higher than usual given the VZ location of this deposit.

As importantly, the other scenarios helps to give clues as to buying and selling price points as the story unfolds.

One thing we still don't know is how the JV will trade. It has to be public to accommodate KRY's current stakeholders, but on what exchange will it trade? I'm assuming Toronto but are other listings in their plans? This could effect the P/E multiple as institutions have some restrictiions on where they can invest.

Anyways, just some quick thoughts.