Yeah R2R I tend to agree with sunnyskies on that one, i.e being a technical retrace.
Yeah DGK CCU has very good profit potential relative to the amount of shares on issue. That fella DDxx in his calcs has things wrong. You don't really value a junior company based on resource that no doubt will expand. CCU stand to do 2.5 million ounces a year. At current prices net annual revenue of around 90 million would be generated. Subtracting operating expenses and taxes (30 %) we get 63 million profit. Now an indicative share price can be calculated as follows,
The 140 figure is the 140 million or so shares on issue. The 12.35 figure is a typical mining constant. Some say 12.35 is to conservative. During the 80's silver boom silver juniors outperformed the physical by roughly 40:1!
DDxx has his methodology wrong in valuation. It is all about profit relative to number of shares as well as potential and obviously market sentiment.
This is why I see CCU at a dollar very cheap. The COMEX no doubt is feeling the heat now. Those people touting a conspiracy were correct!!! Conspiracies do exist.
CCU Price at posting:
$1.01 Sentiment: Buy Disclosure: Held
