new study thread , page-96

re: target prices of pjo and bsg for the year 2007 PROFIT, PE AND TARGET PRICES OF PJO AND BSG FOR THE YEAR 2007/2008.

DATA TO BE USED:
From Post 987497 (3 April, this thread):

4. PJO: Total shares, warrants/options:
81.498 mill shares + 5.780 warrants/options (1) + 11.8395 mill warrants (2), a fully diluted total of 99.117 mill shares, warrants/options.
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5. BSG stake in PJO.
Pre-Issue, BSG owns about 79.4% of the PJO shares or 64.71 mill shares. It will prescribe for 2.1032 mill warrants from the first issue and 1.0516 from the second, a total of 3.1548 mill.

It will therefore have a total of 67.865 mill shares and warrants in PJO or 67.865/99.117%= 68.5% in PJO, all fully diluted.

Comment: Not all warrants need to be shares by Dec 2007.
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PJO:
From post 833750, this thread: Production envisaged to start early 2007:
• Production ~ 300,000 ounces Au Eq per year (± 10%)
– 110,000 ounces gold per year; and
– 11 million ounces silver per year
Cash cost US$1 per ounce of silver (At a much lower gold price (US$475) than the current US$625/ounce. Therefore, consider cash cost to be negative and use the surplus as part of any extra costs).

About CAN$121 mill will be/has been raised and that is sufficient for the mine/ preparation, plant and machinery. There won't be any hedging or bank debt. Allow for an extra CAN$20 mill for exploration/administraton/other costs.

REVENUE: 11 mill ounces of silver, price US$14/ounce=$US154 mill =CAN$175.3 mill ( US$=1.13827CAN). Deduct the previously mentioned CAN$20 mill to leave $CAN155.3 mill.

Allow 25% tax= 38.82 mill leaving a profit of CAN$116.48 mill. Per fully diluted PJO share E/S= 116.48 mill/99.117 mill= CAN$1.175/share, PE is say 25 and that gives us a target PJO price of CAN$29.37/share.



BSG: shares: about 278 mill and it gets 68.5% of the CAN$116.48 mill Net profit or AUS$ 94.27 mill (CAN$=1.18147AUS$) That is per BSG share: 33.9 cents. Applying the P/E of 25 gives us AUS$8.47.

It is assumed that the production remain as stated, the Silver price is still US$14 per ounce and that PJO won't be paying any royalties to the Mexican Govt.

Subject to audit,

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.