valuationAssuming the current gold price hold
Assuming current exchange rate hold.
Assuming we have a small mining issue every three years.
Assuming no major development on new project.
Jag should make enough money to buy out all her share holder in 8 years. In another word, we are looking at 8 times forward PE.
However, there is strange put option movement last week. It could mean three things.
1. the stock is going to tank big time -- to three dollars.
2. The short going to cover. He need to scare the rest buyer before cover. I will not buy anymore next week because of the option trade (I am not interested to be a hero or idiot ). I bought half of my position around 4.80 and 5.30 last week.
3. Some one need to securitize some of his position. With 60,000 dollar cost, someone just got 900,000.00 dollars extra for 45 days. But, the interest rate is just too high.
The most suspicious part is that option set at one week after next quarter earning release.