United Resource Holdings Group, Inc. (URHG)

[johnny0]

I hate to be the guy to rain on the parade, but let's assume the numbers are correct from the FB posting and run them on the back of the napkin here.

The PR said that the mine will now be able to generate 200 ounces per month.

With gold being at about $1,100 an ounce, we are looking at about $2.64M in revenue over the next 12 months (assuming the mine can actually generate 200 ounces per month and gold prices stay low).

I do not know a thing about the mining industry, but I would guess assuming a net profit margin of 25% is optimistically aggressive. But let's entertain that. Under this assumption the mine would theoretically generate $660,000 in profit over the next 12 months.

Let's not forget that there are almost 117,000,000 shares outstanding!!!

$660K in profit distributed to 117 million shares gives as an earnings per share of less than $0.006 earnings per share.

At a stock price of $0.09 per share and a 12 month earnings (very optimistic) forecast of $0.006 per share, URHG's P/E ratio is approaching 16.

I do not see many small or micro cap gold mines trading at above this number.