Pacific Gold Corp fka PCFG

[tvmetguy]

PCFG Valuation Based on Proven Reserves

A $3 Billion Market Cap in the Making...

945,000 ounces of gold. These resources have been audited and outlined in reports prepared by Bharti Engineering and Robertson Research.

743M O/S No Dilution Per Call to CEO Mid October:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56010625

Investor talked to COO on 10/27/10, reason for large A/S appears to be to avoid a hostile takeover, we are pressuring them to reduce it to relax investors, it's not their priority just yet:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56011244

YOU MUST WATCH THE VIDEO AT THE END, TAKES 7 MINUTES.

As I expected, Newmont fins came out on 11/02/10! They had a record 53% gross profit margin in Q3 2010, and that is with only a $1221 average price for gold.

As you can see ladies and gentlemen, PCFG is poised for massive gross profit margins when production starts. In fact PCFG has lower costs to produce gold than Newmont and gold is now way above $1221. I suspect in early 2011 PCFG will be bringing in a 60% gross profit margin. Do you realize how big that is?

PCFG may average a 65% gross profit margin for all of 2011. Goldmans Sachs says gold will go to $1650/oz in 2011.

Link to Goldman Sachs:

http://www.wealthdaily.com/articles/goldman-sachs-new-12-month-gold-forecast-1650-an-ounce/2768

PCFG expects to get 10,000 ounces of gold per shift per year. PCFG also states they will expand to 2 and 3 shifts, going 24 hours per day. Total production could be 30,000 ounces from just this 1 mine as they get started.

If they mine 10,000 ounces at average 1650 gold that is revenue of $16.5M and gross profit of $10.5M. (this would be the minimu expected)

If they mine 20,000 ounces that would be $33M rev and $21.5M profit.

If they mine 30,000 ounces that is $49.5M rev and $32M profit.

I am upping my expectations of PCFG to get $20M minimum GROSS PROFIT FOR 2011 use PE 45 get market cap $900M and PPS $1.21. I then expect $60M GROSS PROFIT FOR 2012 and PPS $3.63 or Market Cap $2.7B.

We also know that PCFG has plans to get its Fernley gold online, as the permit will be valid in Nov 2011. This would double the potential output to as high as 60,000 ounces/year within 1 year! I know the plan PCFG has, and its to get 5 placer mines like Black Rock running up to 30,000/year. That would be 150,000 ounces of gold/year at some point in 2-3 years. This company will be seeing 150,000 ounces per year produced and gross profits per year of $200-300M or even more.

I ultimately peg this as a company worth up to $3B, yup $3 billion bucks and the only way this miracle is possible is because gold is going up, and much higher than it is now.

The reason why gold is going up? The U.S. printed a total of $825B worth of money from George Washington our first president through September 2008, since September 2008, they have printed and additonal $2.2T for a total of $3.0T. To back up all the money printed, gold has to rise. You would expect a minimum of 4x from current prices, but if we were to go on the gold standard again where gold had to explicitly back up the paper dollars, gold would be 15,000/oz.

The Fed just added $600B more dollars yesterday, so now the total printed is $3.6T as in trillion.

$15,000 gold is a stretch, but $5000 gold in a few years is not. If gold is $5000/oz, PCFG will be profiting about $4300/oz and if they are selling 150,000 ounces, that's $645M gross profit/year, its real and it happens, like when oil went to $150/barrel and oil companies had record profits.

YOU MUST WATCH THIS VIDEO: