significant upside, page-8

CT
I figured any gold stock you where in must have a lot of upside.
I would not be in if not for the fact I think Pattos are cleaning house and intend to make money. I like the board shakeup, the aggressive drilling campaign to prove up reserves and the sale of all the other assets to focus time and money on Amayapampa. The market cap is low enough to see upside even if things dont turn out as planned. Patto's Ray Shorrocks is sitting on 29mil shares/options, a good incentive to make progress considering he is not receiving any remuneration for his role as director. If funding proves difficult then there is still upside to sell the asset. If they get up near 2mil ounces a figure I heard somewhere?? thats a lot of gold at $444 production costs, another reason I like the stock as there is room for costs to rise without destroying the company..

Fluff
There is no doubt sov risk will be reflected in the shareprice. In saying that there are plenty of companies that work in challenging countries, environments industrys and still trade quite strongly.
Assuming 60k ounces PA = 13 year operation based on current JORC reserves = $45milPA NPAT...doubling of the shares on issue to 6bil = $24mil market cap ...Based on a PE of 2 that would be a 3bagger..Then sell the asset at a PE of 4 for a 6bagger????....The first few years would likely be higher grade as they would target the higher grades first. I have a clown on another thread quoting PEs of 10X and using a mine life of 6.5years..

Kozzie - been there done that, if the timing is out it can turn ugly (which for some companies is all the time).

Cheers