share price going down, page-5

I think "scared" is exactly what the market is costing in.

That and a lot of investors that must be just finished with AXM and willing to sell at a 12-15% loss.

I did do some calculations today, which are a bit scary.

Please tell me if my logic is stupid.

Cash cost of Sept 2009 quarter $1,078.

Current price of gold USD: $1,123.

Current Net Assets: $138 Mill
Current Shares: 3,400 MILLLLLLLION TRILLION galizzion.
Net assets: $0.0405.

Debt: $0.0.

Only cost would be fixed costs of leasing equipment.

Therefore potential profit from gold extraction should be $45.00 per ounce. Assum 22,000 ounces produced per quarter (no change in Sept 2009 production results). Provides an annual result of 88,000 ounces.

Net Profit: $3.96 Million.

EPS: Net Income - Dividends/ Avg outstand Shares.

Hence EPS: $0.00116 or 3.3% (on current price of $0.035)

Return on Equity: Net income/shareholder equity.

ROE: $3.96/$138 = 2.86%

They have to get cash costs down to thier projected $700/ounce and production at 140,000 ounce p.a.