There's a lot of figures floating around today about ABU's profits and future sp.
How did you arrive at 16.41c a share, a nice price I must admit!
Going on David25's dismal figures:
1m oz at $200 profit/ounce = $200m profit.
Divide that into 3billion shares = 6.1c per share?
Of course ABU are expecting profits of around $600/ounce minimum at today's gold prices, $600m profit = ..... 18c per share!
And the best case scenario of $800 per ounce, $800m profit = ...... 24c per share! This is just on the first mining operation, with several more to follow!
My initial target price is 8c and then building from there.
Then you need to consider that ABU has identified 3.3m oz of gold, and I have reason to believe that this will increase to over 5m oz in the next 12 months. It all looks good to me for the longer term.
Plus ABU has other tenements that appear to be very exciting in their early drilling!
Of course the profit per year needs to be considered and the p/e ratio etc. The market will determine the final price of ABU, but with an asset holding profits worth 18c to 24c a share, ABU would be expected to be rated much more highly in the next 12 months!
David25 is currently causing a "stir" in the Ramelius Forum, RMS. Why he wants to use incorrect figures to cause concern on the ABU forum is difficult to work out? 1m oz at $200/ounce profit = $200m profit ........ not ...... $20m profit!
The next 2 months should be very exciting for ABU holders, specially if the head grades come in higher than forecast!
GO ABU!
ABU Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
