still cheap

by my cals still cheap

paddington is producing 150,000 ounces per annum

current gross profit margin of 150 dollars per ounce

gives gross profit of 22.5 million per annum

less 4 million per annum interest

= 18.5 million

less 30% tax

= 12.95 million per annum net profit after tax

assume 500m shares on issue fully diluted

= 2.59 c earnings per share

currently 33c, gives p/e ratio of 12.7

with gross profit margin of 250 an ounce, eps = 4.69 cents per share. p/e ratio of 7

and this puts absolutely no value on mt morgan or coal assets.