RE:Re: BNN top pickodzie wrote
Thanks for the link. Did not have a clue about bruce campbell mentioning ARG. ARG at 5.00 copper is a cash cow, 61 million pounds per year guidance is 300 million USA plus in revenues with around 200 million in profit. Thats just under the current market cap. This if the copper price stays high and goes higher is easily a 5.00 plus stock.
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This is the second post of yours that spouts numbers that have no basis in reality. Either you cant add very well or you are purposely trying to mislead this board. At $4.80 copper from ARGs presentation their EBITDA will be $79 million US. That would equal aprox. $83 million US in EBITDA at $5 copper. Still a lot of money for a small company like this but nowhere near $200 million.
$83 million US equals aprox. $103 million CDN. The current market cap. or ARG is aprox.$280 million CDN. So EBITDA will be aprox. 40% of market cap not the near 100% that you claim. You also have to deduct taxes, interest etc from EBITDA to get the final amount of profits.
At todays copper prices ARG is doing extremely well and now has more cash than debt with aprox. $9 million CDN. piling up every month. That equals aprox. $108 million CDN per year. With 180 million shares out that equals aprox. 60 cents EBITDA for each ARG share. Income taxes will have to be deducted from that but ARG has spent a lot of money over the last years to develop the business and should also have a lot of available deprecitation to reduce income taxes. If we allow 25% for income taxes that would equal 45 cents per share in cashflow. At 10 times cashflow ARG would be at $4.50 per share. At 15% income tax ARG would have aprox. 50 cents per share in cashflow and at 10 times cashflow ARG would be a $5 stock.
At todays copper prices and even lower ARG is a cashcow. No need to exaggerate it.