I find it kind of amusing that alot
of people are referencing the web cam and not
the exponential increase in revenues for the
company.
Many dont realize the amount of production that is going to take place.
Lets start with based value of the pit.
September 5, 2005
Mineral Assets: Our gravel pit has proven mineral reserves in the amount of $300,000,000.00
The pit value has doubled from most conversations with IR and
people that have spoken to management will attest. (Including myself)
Value = $600,000,000
February 20, 2007
Based on our latest expectations for MS&G, we anticipate full depletion of the mine to likely occur in five to seven years.
600,000,000 Div 7 years = $86,000,000 per year revenue.
Just from the pit and that does not include trucking
August 17, 2006
Once all the new equipment is in place the rate of production of the MS&G mining operations is expected to rise quickly with anticipated depletion of the mine to now be over the next six to eight years, rather that the original projected depletion of about thirty five years. Projected profits from its mining operations are of likely to come in around 10-15 percent of gross revenues
$86,000,000 Div 12.5% (Split the difference) = $10,750,000
profit
$10,750,000 div 800 million shares OS = .0134 EPS
Times 5 for a crappy multiple is .065 per share just on the
Assets of the pit nothing else.............
Are we undervalued ??
jockee
