I keep it SIMPLE because speccies are largely day traded on...

I keep it SIMPLE because speccies are largely day traded on market sediment/hype and what resources they have in ground. Not what they are earning because 90% of species DON?T earn anything! They are explorers?

EPS doesn?t hold much weight for me when setting my targets, as you?ll see?

EPS
2012 FULL YEAR PRODUCTION - 1.75 mill oz pa x rough average $22 oz avg profit (ranging $30-$40 oz silver price) = $38,500,000 profit pa
$38,500,000 ? (nil dividend) / 1.3 Bill = $0.029c EPS

PROFIT RESOURCE CAP ESTIMATE
In ground resources ? 15 mill oz x $22 oz = $330,000,000 in ground profit with JORC upgrade to come.

$330,000,000 ? 10% fudge factor (exploration costs, repairs etc.) / 1.3 Bill = $0.23c
(NOT factored in ? Extra costs/delays, Zinc, Copper finds, JORC upgrades, rising silver prices $40+)

I am happy with a 20c target? Fudge the figures as you wish?

NOW, someone stated a while ago, MACMIN had 44 mill oz silver JORC? In which case, you would be pushing 0.40c+ easily!

I?m allowing for a 1c rise in resource cap estimate for every 1 mill oz of silver JORC from here. They increase to 20 mill oz from 15 mill = 0.25-0.28c.

Etc? etc?

Soooo many factors though?

If you disagree with my figures... no worries, if you work it out differently, fine...

Each to their own... I go off in ground profit.

Heres to a bullish monday!