Well, it sounds high but I think there's a good argument for us achieve an equivalent SP to a few years ago. We're in a MUCH better position now.
In Nov-11, our SP was 27c. Since then, we've added approx 25% extra shares to the registry so our equivalent SP would be approx 20c. That would give us a MC of $64m.
We have cash and investments in excess of $6m and a full funded drill programme that is bearing very real fruits but not included in this calc.
If we can get even 16k oz gold produced per year at a margin of AU$400/oz (AU$1600 POG - AISC $1200) we would produce earnings of approx $6.4m p/a which could easily justify a MC of $64m (P/E 10).
The numbers all look reasonable but the CAPEX required to get into production would change the figures and the $1200 AISC is just a wild guess based on other aussie producers (mid-high end).
So my guess would be a range of 12c to 20c. But in all seriousness, I've seen goldies shoot to $100m+ very rapidly in the past so the sky's the limit.
If we prove up more large, economical amounts of gold and copper, it's on baby!! We would probably be acquired before achieve anything near that so perhaps we need to consider what the exit price would be when someone comes sniffing.
(these calcs are super rough so please take this for what it is - a bit of fun)
ERM Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
