Anyone Who Owns SPXP... How Have You Determinged A Valuation Estimate?
There are about 48 million shares outstanding, and at a price of about .70 per share, it has a market cap of 33.6 million.
I am completely at a loss of why it had such a huge drop recently on no news. My only thought is that their website was revamped right about this same time and perhaps more people read more info on it then before and have come to a new valuation estimate. What are your thoughts?
I have done my own analysis, and assuming that Spirit gets to the production levels that they are planning int he intermeadiate term for the Mulcany Project, and using industry averages for price to sales ratios, an estimate base price of gold of $900 per oz, and ignoring any sales of other metals, I predict a stock value somewhere around the $3.50 range. Now obviously to maintain this, more reserves would have to be added beyond the roughly 1.1 million oz, but considering the Mulcany project will produce cash flow in addition to the new tugnsten mine, if that goes through, they will have the ability to agressively explore their concessions and not worry about running out of cash like most junior miners.
A similar type of estimate seemed to have been the market concesus for quite a while as the share price was between 3.50 and 2.50 for most of the past 6 months. I am just wondering why the sudden change, and as described above, a rethinking of valuation based on the more accessable info on their website is the only theory I can think of.
Your thoughts please.
Thanks.
AI
