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BULM - Another lebed email..

Lebed.biz Alert - Compare BULM to RGLD and SLW!

Precious metals royalty companies deserve astronomical valuations compared to regular gold and silver miners because they receive royalties yet don't have to pay for any of the production costs.

BULM is receiving a 1% royalty from NEM's Leeville/East Ore mine. According to NEM, the mine is producing 3,200 tons of ore per day with 0.41 ounces gold per ton of ore. That's 1,312 ounces of gold per day or 478,880 per year.

With $1,065 gold, that's $510 million per year in revenues to NEM of which BULM's 1% royalty would equal $5.1 million.

Royal Gold (RGLD), the largest gold royalty company in the world, is currently trading for 27 times sales.

Silver Wheaton (SLW), the largest silver royalty company in the world, is currently trading for 31 times sales.

If we take the median of RGLD and SLW's price/sales ratios we get 29. Imagine what a 29 price/sales ratio would mean for BULM. With $5.1 million in annual revenues possible, that's a potential market cap of $147.9 million.

With 38.7 million shares outstanding that would equal a potential share price for BULM of $3.82 per share.

Remember, I am not an analyst and I am not making and projections or target prices. Do your own research and make your own investment decisions.