La Mancha Resources Inc LACHF

RE: red horizon: you have to back out changes

[RedHorizon]

Working capital changes are a legitimate consideration.  However, the price to cash flow valuation I presented yielded a value of $3.09.  I am asserting the the value needs to be at least $2, not $3.09.  The $2 number is based upon 20x EARNINGS, NOT CASH FLOW. 

I am using the $2 value since it is more conservative than the cash flow multiple valuation which yielded $3.09.

Finally, I believe the growth in ounces produced over the year will result in EPS for the year in excess of the 10 cent number.  I believe that number is also conservative since by the 4th Qtr. we should have substantially more ounces per quarter being produced than in Q1.  And of course we are ignoring here any changes in the gold price.