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Re: Destinator post# 6572

Monday, 04/16/2012 2:09:15 PM

Monday, April 16, 2012 2:09:15 PM

Post# of 12573
On points 8,9, and 10, how is that a reason for the share price to be lower because they have nothing to do with valuation.

Let's go through the numbers. EXS has 800,000 ozs. of Au - with the JUNIOR MARKET IN SHAMBLES, the investment community is assigning $30 per oz. which is $24,000,000 so on a fully-diluted basis (187,500,000 shares) that works out to $.128 per share. Let's assign $60 per ounce in a BETTER MARKET so that gives us $.256 per share and then throw in another $.05 for the other properties. You now have $.306 for the upside target. So now assume that every dime spent in exploration results in additions to the 43-101 compliant resource and EXSFF nails 1,500,000 ozs by Year-end. Assume 45m market cap ($30/oz) or $.24 per share plus another nickel for the other properties OR assuming a BETTER MARKET - repeat - BETTER MARKET - and you get $.53 per share. Now if you start nailing the hinge point and the widths and grade start really ramping up, perhaps the share premium for "blue-sky potential" improves and you get $100 per ounce valuation and you could make a case for $150m market cap or $.802 per share.

So you see, as a shareholder, I can see the upside very clearly. What I can't see (and won't acknowledge) is that Dupont is to blame or that McCoach is to blame or Market Digest is to blame or the underwriters are to blame. I also own a few more juniors that are suffering as well but the blame lies with the Junior Mining market - period. When the juniors turn, investors will turn to large potential, low CAPEX, well-managed deals that are close to production and that will NOT NEED FINANCING in this current environment. AND, in the gold developmental space, they will look for the low market cap per ounce stories first and with EXSFF's CURRENT - not potential - CURRENT $44 per ounce number, it resides 50% higher than comparable companies out there. Maybe that could go down as "Point 11" when you get back to valuation rather than finger-pointing.

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