hmmm... market cap presently around $60m ... if they were doing around $60m in profit per year...
then THE PE should be 1.
I think you are forgetting to convert from dollars to cents jasonjay in your calcs! Something is wrongwith your spread sheet? (with respect)
I don't know the exact numbers (lazy saturday), lets say MC goes to $80m after capital raising, and MOY makes $40m per year from 80-100koz (I under-estimate because of other non c1 expenses, exploration, grade decline maybe)...
that is a current PE of 2...
A typical company like MOY has a PE of 7-8 (spec gold company, about 8-10 year reserves )... ie this will allow a SP appreciation of x4 to about 8c.
SP 8c base case with my underestimated, back of the envelope, not risk adjusted numbers
Blue sky... easily multiply that x4 to a much higher number, the leases look to be on trend, alot more drilling needed, higher grade lodes likely.
MOY does have its risks, but being a processor in the isolated Nullagine region makes it ideal for expansion given more reserves in its lease and neighbours.
MOY Price at posting:
39.6¢ Sentiment: Buy Disclosure: Held
