Hey RushdateIMO I would consider that valuation as ridiculous....

Hey Rushdate

IMO I would consider that valuation as ridiculous. Roughly 3.5 billion shares at a price of over $1 each? Mark Ashley may have dreams where the SP is this high but that's the only place it will ever happen.....

Commsec also posted EPS figures that, in my opinion, are totally unachieveable. 3 cents per share in FY 2010 for example (and it get higher in FY 2011).

3 cents per share over roughly 3.5 billion shares is 105 million profit....FROM WHERE? The quarterly reports we've seen so far show they can hardly sell gold for less than it takes to rip it out of the ground.

I'm viewing all such forcasts with a high amount of skepticism....

I think that if they can weather the next 6 months, the should be able to keep their heads above water, but they'll never achieve a SP of $1 again (not without a serious consolidation anyway, which isn't far down the track IMO).