Assumptions; Gold @ $600, Company forcast is correct (70,000 oz)
Per ounce profit (600 - 350): 250
shares on issue: 200mil
estimated '07 extraction: 70,000oz
17.5mil profit / 200mil shares = 8.75c per share
PE of 8 = 70c
I realise there's more to it than this, but is there anything that would lead us to belive that their forcasts would be incorrect or way off? Even half the amount of gold mined would give a price of 35c which is reasonable.
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valuation
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