GLE Just a little more info:
2005, they had just 1 mine producing 40,000 + ounces of gold
2006 A 2nd mine producing about 60,000 ounces is now in full production
2006 (in the next week or so) An acquisition of a 3rd mine with about 40,000-55,000 ounces per year will close.
2006 production should be about 120,000 ounces. With current gold prices they make about $200 net profit per ounce = $24,000,000 / 205,000,000 shares outstanding = $0.12.
2007 production should be about 160,000 ounces. With current gold prices they make about $200 net profit per ounces = $32,000,000 / 205,000,000 shares outstanding = $0.16.
With the stock price at $0.71, the 2007 forward P.E. is only 4.4. Even if you give them a conservative P.E. of 15, a $2.40 stock price I believe is reasonable.
If gold prices continue higher, then an even higher price would be reasonable in my opinion.