iHub Mining Sector Entrance Lobby

[echarters]

RO =recoverable ounces (2M)
PPO = profit per ounce (140) assumes payback of debt, and cost of thruput are included in this figure.
ML = mine life (12)
PE = price earnings ratio (7)
NAT = net after taxes (RO X PPO)/2
SO = shares out 40M
FP = fair price

FP =((NAT/ML)/SO) X 7

FP=((140M/12)/40M) X 7 = 2.04 US

Or 2.91 CDN per share.

This will increase up to 30% up to the feasibility and then drop back.

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These are not CKG's figures, just examples of how to figure the worth of a share of a profitable open pit mine at average cash costs per ounce, including some deductions for depreciation and average P/E of gold mines.

You may substitute your own values according to whatever situation you encounter. The cash in CKG's till is not counted in my opinion, as they will need cash to develop. All this does is reduce dilution or SO.

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