gold production at $90 an ounce!!, page-6

Unless you have a known resource that allows for ongoing production for X number of years, I never use PE for miners. (That is, unless you have X years of known production ahead where X is a number GREATER than your applied PE).

So for TRY, that would be a PE of around 5, max.

Whether or not in the full throes of a bull market a PE of 10 happens, it makes no sense (to my mind) to apply a measure of PE of 10 to a company when you have only 5 years of known production.

If you own Olympic Dam, with 50 years+ of resource, that is a different story....


I find NPV a better way to value miners, based on best, worst and median A$ commodity price, and conservative cost assumptions.


If TRY ever trades on a forwards PE of 10, I will no longer be on it.

But that is not an issue we are even CLOSE to dealing with at current prices. The market does not even fully grasp how profitable TRY is in the PRESENT tense, as they clearly believe that the ramp-up cashflow figures reflect TRY's steady-state profitability. They don't.

But I strongly agree with you that $8.00 is quite possible when the gold bull really starts going.

And with the gold price a moving target, 'reasonable' forward price assumptions are a moving target...

So who knows...?

Wouldn't you like to put this share on fast forward and see what happens... I can't wait.

No actually, I CAN and WILL wait.

Y