Classic share price calculation:
36,000 tonnes x 0.4 = 14,400/ounces per month
$1300 (gold price) - $400 (production cost) = $900 profit per ounce
$900 x 14,400 ounces = $12,960,000/month profit
$12,960,000 x 12 month = $155,520,000 a year profit
Most companies share price is based on P/E ratio.
On average a P/E ratio of 10 to 15 is normal if not conservative.
155,520,000 x 10 = $1.55 Billion Market Cap with a P/E ratio of 10
With 719 Million shares as O/S
1,555,200,000 / 719,000,000 = $2.16 a share
With an O/S of 5 Billion shares (assume all of it is diluted)
1,555,200,000 (market cap) / 5,000,000,000 (shares)= 0.31/share
Any thoughts? Did I miss anything?
Even if you consider a 50% margin or error that's still $1.8 at current O/S and 15 cents fully diluted.
ALSO, that's just one site, there are 3 more :)
PLUS, that's with Gold at $1300, Could go to $1600 by the end of the year.
