Dont sell your shares below 30 cents! Be patient!
Based on my calculation, if gold price keeps at 1300 dollars per ounce, the intrinsic value of AUE for shareholders is 140million, it means around 30 cents! It's likely the production for this year will be around 120k ounce because 14days in march AUE produced 4500 ounces of gold. It assumed that life of mine is 8 years. All in sustaining cash cost is les than 900 dollars, and I calculated the cost of operation per ounce should be less than 100 dollars whole year. (Please check the financial report). So EBITDA per ounce at current gold price (1300 dollars per ounce) is 300 dollars! Net profit per ounce should be 250 dollars, and for whole year, net profit should be 30 million dollars! For eight years, AUE will have 240 million dollars net profit, and if we minus debt 100 million, AUE have 140 million dollars intrinsic value! I agree that AUE is the most undervalued gold company! So many still drilling gold company, their share price already doubled, tripled. AUE still at the bottom price!!!!! This is why Griffins has bought more than 74 million shares and I think the cost is above 15 cents!!!!