New World Gold Corporation (NWGC)

[Zunobira]

The way it's moving with revenue & profit
, I believe this stock will appreciate to much higher value near term. That will help them not to dilute much in case they need to raise additional funds. Q1 made $889,327 revenue. Now their production volume raised to 21 ounces/day, which could even go to 30 ounces/day. So for rest of the 3 quarters, if they produce average 25 ounces/day then it will be 6750 ounces. Let's say the average gold price be $1450/oz (too conservative) from Q2 to Q4 2011, then it could generate around $9.8M revenue. Add $889,327 revenue in Q1 - total comes near $11M revenue for full year 2011.

Profitability: Excluding one time cost, Q1 net profit was actually 25% of revenue. So for the full year it could be $2.2M net income.

2012 will be even more growth. So what market cap it should get? My conservative valuation is $50M at least. Divided by 58M shares o/s = $0.86/sh. I see a nice multibagger here.