Ann: Dolphin Tungsten Mine Development Update, page-23

for me assuming a PE of 25 is rather high being that G6M will be a small single commodity miner in an obscure commodity. I like to run my numbers through the range from sector high PE ratios to Sector low ratios for profitable small cap miners and then take something of an average. I still came up with an attractive figure when I ran the numbers a while ago. I like to set a middle of the road target price and only reassess when either approaching my target price or there are new negative factors to take into consideration with the project (ie cost blowouts, commisioning issues, commodity price falls, etc). I find this allows reasonable chances of catching most of the upside and limits your downside.

Most of the remaining risk for the project is to do with execution, so if you think the management team will be able to pull it off reasonably well then it presents a good opportunity at these prices. That’s my view anyway.