I did some basic calculations trying to work out what the...

I did some basic calculations trying to work out what the approximate profit of this company will be for the past financial year. If someone sees issues with the figures used then please indicate.

annual production sold: 45,000 ounces
annual production held: 20,000 ounces

average gold price per ounce: $ 1400 (AUD)

price of gold sold and at hand: 1400(45,000 + 20,000)
= $ 91,000,000
(as compared to $ 64,000,000 for previous financial year)

mining and production costs: $ 40,000,000
(extrapolated from first 3 quarterlies)
(previous financial year $ 28,000,000. Increase as a result of higher fuel prices)

depreciation and amortisation: $ 10,000,000
(guestimate based on $ 15,000,000 figure for 2009-2010 financial year and considering development and exploration expenses about half for first 3 quarters of 2010-2011 financial year)

royalties: $ 3,000,000
(guestimate based on $ 2.5 million royalty figure from 2009-2010 financial year)

management expenses + other misc: $ 2,000,000

PROFIT BEFORE INCOME TAX: $ 36,000,000

PROFIT AFTER TAX: $ 29,500,000

P/E ratio 130,000,000/29,500,000 = 4.4

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The current P/E ratio is about 13. However this is greatly influenced by the accounting entry for the 2009-2010 financial year of "Gain on acquisition of subsidiary" of $ 9,603,258. This figure is a one off item (?) and consequently is subtracted from the annual profit figure making the P/E ratio a lot higher, i.e

130,000,000/19,000,000 = 6.84

as compared to,

130,000,000/10,000,000 = 13.

Also depreciation and amortisation costs were relatively high in the 2009-2010 financial year, $ 15,000,000.

As far as I know that "Gain on acquisition of subsidiary" will be zero for the 2010-2011 financial year. Also the depreciation and amortisation figure should be less. Therefore the P/E ratio of 4.4 calculated above is more representative? With gold going to $ 3,000 an ounce next year TBR stand to do well. Also hopefully oil prices remain at current levels or lower.

The average price of gold for the 2009-2010 financial year was about $ 1,100 per ounce (AUD). This is compared to $ 1,400 for the 2010-2011 financial year. For 65,000 ounces annual extraction, this corresponds to about a $ 20,000,000 increase in revenue, hence why the profit for the 2010-2011 financial year should be much stronger. If only oil prices were not as high and at current levels and not hitting $ 110 a barrel?

If anyone sees obvious issues with my basic analysis please indicate.