valuations

Hi everyone,

Im pretty new to this but can you tell me if my logic is right here.

Based on a price of silver of $40 AUD and cost of $15 that works out to be a profit of $25 per ounce.

AYN is forecasting annual silver production of 2million ounces per annum. The information on their website states that between the Twin Hills and Mt Gunyan projects they have aproximately 15.1 million ounces of silver, so the mine life is a little over 7 years.

If they can produce 2 million ounces per annum at a profit of $25 per ounce thats a forecasted income of $50 million per annum.

The market capital is $130 million so P/E ratio is about 2.6. Based on a P/E ratio of 7 years, and silver prices remaining the same (which is unlikely) the market capital would have to lift to $350 Million that means the share price should rise by aproximately 270% (27c).

Have i missed anything out? Does this seem logical? If so then even at 10c this company seems pretty damn cheap!