GREY:PTQMF - Post by User
Post by
sydenhamon May 03, 2010 1:38pm
353 Views
Post# 17056841
10X cf = $2.50 valuation
10X cf = $2.50 valuationThe post below is by Bobwins on another site.
"Petaquilla announced improved results today from their new gold mine. Cash costs down to $500. They are on track to hit 80,000 oz in 2010 with plans to increase production capacity from 2200tpd to 5000tpd.
Reserves are a little low for 5,000tpd. Looks like just under a million oz in all categories but company is drilling extensively on land package in Panama.
Here's the quick and dirty.
80K oz X $600/oz cashflow= 48 million divided by 180+FD share count = ~ C$.25 cashflow/yr/share.
Typical multiple is 10X for startup juniors = C$2.50 target plus upside if they buildout capacity. "