With gold over $A2000 why is the CMM SP so low (depressed). Using my rough order of magnitude (ROM) calculator and based on these numbers:
1billion shares, 100,000 oz pa, circa $100m profit/yr then mature SP should be circa 32- 40c'share; and
based on the mining life cycle development graph (mine under construction) then SP should be about 50% of the mature production price ie circa 16c.- 20c
Now I have made an assumption that the current exploration will increase the gold reserve by some 150K to 200K oz but even if we discount the 'should be SP by some 25% the SP should be 12 -15c which is a long way from its current price.
Why would anyone sell now to gain a tax loss/gain when the numbers indicate the likelihood of a significant SP increase in the very near future?
R1
CMM Price at posting:
8.4¢ Sentiment: Hold Disclosure: Held
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