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uwf2466

11/10/11 8:11 PM

#72199 RE: foxwoodsfan #72198

I wish I could say I was feeling comfortable going into next week. In my own way, I am trying to logically work out why the 4¢ range makes sense or doesn't. Maybe at this point, the stock is trading fundamentally where it should be. The speculation, for all intents and purposes, regarding anticipated recovery rates, estimated through-put and operating expenses are all variables that the company provided forward guidance on.

At the close today of 4¢ per share and using a P/E ratios of 15, here's a backwards production estimate using difference market PPS closes.

It seems at this point, the market has set the ounces at just under 300.


Just trying to reconcile in my mind why this is trading the way it is. Maybe investors are finally placing a value on the company using the guidance and not emotion.
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H3Capital

11/11/11 4:35 PM

#72362 RE: foxwoodsfan #72198

NRG plans to process up to 480,000 yards per year, for three years, producing 6,000 to 12,000 ounces of gold per year.


What type of permit/permission would be required to process over 480,000 yards per year, since we would appear to be maxed-out at 6,000 ounces per year if the recovery rate is .4g/cy and the capacity is 480,000 yards per year.