RE:RE:production.goldsucks wrote:
So unfortunately for all the longs here at this point POG will make no much difference until we get some positive news either from Lamaque , Greece or Turkey. And I mean POSITIVE.
Here is my take on how the gold price affects ELD.
Any gold price above $1300 is affecting the share price as follows:
A $10 rise in gold multiplied by the number of ounces of gold produced by ELD yearly (300 000
ounces) would result in a yearly 3 million dollar profit.
On a per share basis (600 million shares say) this is .05 per share.
The benefit per share of .05 is then multiplied by a fictional hyper conservative P/E ratio of 6
which results in a .03 cent share appreciation.
This is what happens to companies with poor results and a dismal share price track record. Fund managers only sell winners, not too much the losers like ELD with almost criminal records. It should come back , the higher price I mean, I add this as a disclaimer because of the feverish criticism on this site from the lower grades of gold, when criticizing.