It's a cracking deposit, but I reckon you need to include a few...

It's a cracking deposit, but I reckon you need to include a few things in this analysis; like additional equity issued for project development financing, corporate income tax and royalties. This will water things down a lot, especially now that the SP is going to come in for a battering (cost of capital is going to go through the roof). The PE multiple isn't a traditiional way of valuing these types of pre-production projects as it implies an ongoing revenue stream (for a finite life resource), doesn't consider time value of money and ignores initial and deferred capital expenditure. A better way and more accepted way to value these projects is discounted cashflow analysis to produce an net present value, which is then risk adjusted for country risk, execution risk, sector risk, etc. You typically see a 50% discount applied to the project's net present value for these single asset enterprises. That divided by the expected issued equity will give you a target price for the stock. Would be orders of magnitude lower than the $10/sh, $20/sh or $30/sh you are mentioning. Strange things happen in the market of course (with shorts covering and flamed speculation) but the above is how to look at it from a fuzzy quantitative perspective.