Post by
Retiredgeo on Jul 26, 2023 7:17am
Some math
For the sake of simplicity I have ignored the gold and the base metals.
If they generate 5.25 million ozs of silver/quarter that is 21 million ozs/year.
21 million ozs x $25 USD/oz x 60% profit margin (AISC of $10/oz) = $315 million USD
$315 million USD x MAGs 44% = 138 million USD
138 million divided by 105 million shares = $1.31 USD/share
It is currently trading at a PE $11.26/$1.31 = 8.6
In my opinion 8.6 leaves considerable room for share price growth.
Comment by
Retiredgeo on Jul 26, 2023 5:49pm
Recrunching the numbers: $12.42/$1.31 = a PE ratio of 9.48. I still think MAG can go a lot higher.