If POG goes up $100 an oz, an additional $5million in revenue is earned.
5mil is 500mil pennies - divided by 400mil shares gives you 1.2 cents EPS per $100 increase in POG.
So if third quarter we made .4 EPS (without impairment) and POG has gone up $200 then we should be looking at around .064 EPS going forward (not for 4Q of course).
.064 EPS times four is .256 EPS annually. 10x-20x P/E is then $2.56-5.12
So a target price at 1300 POG should be $2.5 - $5.12 Crazy!
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.