You are rite... i'll put some economics around TAM, rather than...

You are rite... i'll put some economics around TAM, rather than just talk about price of gold...

ok so lets say they do 70,000 ounces at a profit after tax and everything of $100/oz. Thats $7m, yes? Ok.

...put that on a PE (price to earnings ratio Davo) of 10x (forget putting it on a higher multiple rite now as its not got a proven track record)... that means shud be trading at market cap of $70m, not the $115m it is a moment.

You are rite, TAM hasn't fallen anywhere near as much as it shud have.

But if they only do 50,000 ounces this year at $100/oz profit and PE of 10x thats really only justifying a market cap of $50m.

Why a PE of only 10 you beg with tears and anguish??? Stay with me....

By the way how many years of reserves do they have? CashedUp help us out here as an independent,

Economic reserves i am taking about, not wing and prayer stuff.

Handy hint... it is less than 10.... so why would you pay more than 10x? Not a trick question. Cause they might find more??? Yeah and santa claus comes every year too, but i dont pay santa. never ever pay for reserves that aint been discovered yet... that is speculation, not investing.

Observations, never ever recommendations, do your own reseach and NEVER rely on posts on forums for money making ideas.