So 750k total ounces, and 450k measured, $550 production cost per ounce. Im not going to consider listed oppies as expiry is just too far out and the conversion $$ are only ~$3m. Current MC of 29m and 7m in the bank - (therefore an EV on approx 22m), long term (conservative imo) gold price of $1500.
Total back of the envelope stuff and a very simple perspective, acknowledging I need to do more research.
Measured - 450k * (1500-550) = 427.5m at say 50k oz's per annum = 47.5m gross profit per year.
Assuming approximate share dilution of a further 200m we have approx 630m shares on issue giving a forward P/E of
0.068 /(47.5/622m) = 0.9 and if the average gold producers P/E is say 8 then we have
0.068*(8/0.9) = 60c per share. Not bad upside - have a I got this right???.
Please correct me if my numbers are out.
Im just going to ignore the inferred and indicated as I like to keep a conservative approach to any calcs.
Must do more research on financing options and debt/equity mixes but either way, based on this conservative estimate im confident MYG can service any debt with reasonable comfort given Mgmts experience etc.
All Im saying is surely this is the bottom for holders?
Disc I have a small position and looking to increase it.
Cheers!
MYG Price at posting:
6.7¢ Sentiment: LT Buy Disclosure: Held
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