Thanks a lot for the message. If you could be so kind as to clarify the following:
"Based on that cash flow I have then taken off tax and royalties and get a basic assumption of approx 17 million NPAT.
Market cap of approx 117 / 17 = P/E of approx 6.88 currently."
So if our assumption of P/E = 4 is correct, then AYN is overvalued by a factor of 50%+ looking at its present market cap.
What P/E ratio would you apply to a mine with a life of five years? I've read that mine life is what determines PE for mining companies like AYN, whilst for other companies with no such parameter (such as banks - there's no 'life' of a bank - you'd just apply the industry P/E).
AYN Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held