When you take into account the amount of lead and zinc they have you can work out a dollar value for the lot an then divide by the silver per ounce which brings you in at 50m+ oz equivalent silver.
My question is how would you value a future target SP assuming full production? It was mentioned 3m oz p.a. production. What is a reasonable profit margin for a pure silver play? I have assummed 1/3 or $10/oz? That gives me a $30m profit pa. Assume a x10 PE ratio that gets me to a Market Cap of $300m. With a current MKt value of $10m (current MktCap $14m - $4m cash (?) = $10m) so $300m / $10m = 30 x current share price 10c gives me a target of $3!!!
Feel free to shred my calculations they do sound a bit to good to be true.
ARD Price at posting:
10.0¢ Sentiment: LT Buy Disclosure: Held
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