Jojo,You are absolutely right from a long term perspective. What...

Jojo,

You are absolutely right from a long term perspective.

What would be an appropriate net profit margin on $1.4 billion of sales?

If we take a conservative 20% then net profit is $280 million. Applying again a conservatibe PE ratio of 10 we get a market cap of $2.8 billion so much more than 100% upside from here.

I say that a PE of 10 is conservative as AGO has the possibility of further doubling production from the 12 million tonnes and the calculations do not factor in Ridley and Balla Balla. This could well be a multibagger over the next 3 years and at much less risk than some of the junior explorers that so many people get into.

I will not be selling out anytime soon. As for the delay on Ridley, call me old fashioned but I would rather wait and get the best possible price for my assets rather than push for completion just to prove to a market overrun by short term traders that I can meet transaction target dates. Even better if I can package Ridley and Balla Balla together and make a killing after the merger is complete.

BR
Max