p/e ratio

With 3.7 billion shares and using today's gold price versus anticipated mining cost at $870 and assuming we hit stated 140k per year production it would leave a profit of around $37,520,000 or .01 per share so if we use a p/e ratio of say 10 plus using a share price of 4c that should give us a share price range of 15 - 16 cents a share,if we were to use the P/E ratio as any guide.

Not sure if my calcs are right, really wanted to get a feel for what others think. I to have been averaging down on my investment and constantly have my ears ringing with the clash song should i stay or should i go now!


Price-Earnings Ratio - P/E Ratio
What Does It Mean?
What Does Price-Earnings Ratio - P/E Ratio Mean?
A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

Price-Earnings Ratio (P/E Ratio)


For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95).

EPS is usually from the last four quarters (trailing P/E), but sometimes it can be taken from the estimates of earnings expected in the next four quarters (projected or forward P/E). A third variation uses the sum of the last two actual quarters and the estimates of the next two quarters.

Also sometimes known as "price multiple" or "earnings multiple".
Investopedia Says
Investopedia explains Price-Earnings Ratio - P/E Ratio
In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.

The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay per dollar of earnings. If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay $20 for $1 of current earnings.

It is important that investors note an important problem that arises with the P/E measure, and to avoid basing a decision on this measure alone. The denominator (earnings) is based on an accounting measure of earnings that is susceptible to forms of manipulation, making the quality of the P/E only as good as the quality of the underlying earnings number.