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share price assumptions

  1. 4,803 Posts.
    hi all seeing as we appear to be getting close to having our long awaited bfs and the ability to get amayapampa up and running i was wondering what sp price assumptions people had.
    i have done some rough workings and have no idea if how ui have done it is right so maybe someone can correct me and provide some workings of their own.

    Resource - 1.3mill oz
    Cash Cost - approx USD 350/oz
    POG - assume USD 1100/oz
    Shares on issue - approx 1.8bill

    i am going to give away the first 300k oz (sell 300k oz at half spot price to cover set up costs) to getting the mine up and running and pay salaries. so we are left with 1mill oz.

    1,000,000 x USD 750 = 750,000,000
    divided by 1.8bill shares = 0.42c/share

    - above assumes resource does not increase which i understand is quite likely.
    - above assumes that pog stays at currentl levels which imo is highly unlikely
    - above assumes shares on issue don't increase which i guess that too is pretty unlikely
    above assumes that we would have to forward sell 300k oz at highly discounted price

    current sp 1.4c. surely this has to be of interest to the market?

    feel free to comment
 
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