Anyones's thoughts?
So SPXP has slid again, falling to $.43. With about 48 million outstanding shares, the company now has a market share of just under $21 million. The company has about 1.1 million oz in known reserves, so at the current price of $980/oz, thats about $1.08 Billion in gold reserves. Put in another way, thats about $22 of gold per share.
Doing the same type of analysis of Auerillian resources, the company that found the huge 13.7 million oz deposit in ecuador, is has about $92 per share. They have not started mass scale production either. It is currently trading at $9.38 per share. The ratio of $ of gold per share over price per share is roughly 9.8.
Now aeurillian has a much larger deposit making it more feasbale to extract and disperces the fixed costs of capital over more gold, so I wouldnt expect spirit to be trading at quite near the same multiple, but at 9.8 as an estimate, spirit should be trading at about $2.40 ($22/9.8). And this is based on an estimate of spirit not finding anymnore gold, and it is neglecting any copper, zonc, and silver mined or the tungsten mine just aquired. And this is what the market was doing until the recent and seeminly unjustified collapse.
So does anyone have any thought on what is happening here? Why is the market giving such a low $20 million market capitalization for spirit? Am I flawed in my analysis?
AI
