Thanks for your reply champ."P/E's are really only a sentiment...

Thanks for your reply champ.

"P/E's are really only a sentiment gauge so they can go as high as the general sentiment goes.

Having said that, I always run a scan over similar companies in similar sectors to determine what the average P/E is for that group. Then you can apply it to your company.

I would say that a P/E of 8 for AYN at this stage would be ample for AYN until it proves up a larger resource etc."

I'm aware that P/E is a sentiment gauge and is basically a ratio of how much the public is willing to pay for a certain level of annual income. But we can't interpret it the same way for a company with a limited mine life. Would you pay eight times the annual income to buy a mine outright that would only work for five years? That's why I've applied a PE ratio of four.

If there was a significant increase in mine life which led me to believe that a PE ratio of 8 was acceptable then I would value AYN at 17.4c.

"Now thinking back to when we had Coeur listed on the ASX (which is one of the biggest silver miners globally) I think that they had a P/E of 50 or so??"

Perhaps they had a FAAAR greater aggregate mine life?

Thanks a lot for your thoughts again, champ!