This stocks looks undervalued to me, I'm no expert, but rough figures are:
Production for 06/07 = 70,000 Ounces
Say gold price of $650US/ounce
Say AUD at 0.75
So $865AUD/ounce
Operating cost / ounce = $350AUD
Nett / ounce = $865-$350 = $515
Nett earnings for year = 70,000 x 515 = $36Mil
Shares on issue = 488mill
So EPS = 36/488 = 7c
And PE = 0.3/0.07 = 4.04
If we apply a PE of say 10, this equates to a sp of 75c+ (ie 2.5 x curent SP)
Anyone have comments on these figures...
Thanks
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