GREY:PTQMF - Post by User
Post by
wwadehammeron Jul 13, 2011 11:19pm
186 Views
Post# 18829428
Present Value
Present ValueBased on the March 8, 2011 update, PTQ 's stated proven, reserve, and inferred gold in ounces are 2,139,383. Using the following assumptions, PTQ's present value is $6.37 per share not including the PDI spinoff":
Market Cap 123,590,000 shares outstanding
$1,283,629,800 in after tax profits ($600 per ounce times 2,139,383 implied gold ounce reserves}
10 years to mine the gold
a present value discount rate of 5 percent per year
I don't understand why the stock price is 10 percent of projected present value. I also don't understand why TECK is
not making a buy out offer since PDI would tie into copper production. What going on here? Are investors afraid that
the USA will get its act together and cut spending? A USA balanced budget and economy improvement could bring
gold prices down to $700 to $800 range quickly. Is that whats holding back this stock?