RE:Just for fun since eps has no meaning in evaluating a mining company I'm always surprised to see "investors" trying evaluate ($) a mining company using it...
nav is the mesurement, not eps. since a mine is an asset that is depleting over time eps has no meaning. amount of gold and cost are the keys... over x years... what's your nav on orezone?
good luck
JAYDEE16 wrote: Tesla's market cap makes me laugh at a almost 400x P/E so I was thinking considering miners have one of the worst P/Es in the market at the moment lets look at ORE at a potential 15x ratio and a 2000$ gold price. Lets also take into consideration they hit the gap zone now that rainy season is over and are able to add 70 000 ounces to the yearly production in the new resource estimate.
So all in cost of 700$ that gives us 1300$ per ounce profit. So 260mil per year free cash. X 15 P/E ratio / 325mil shares. = 12$ a share (14.85$ CAD)
In my opinion miners and gold have the worst sentiment in the market right now. (well besides pot stocks) So even at a 5x P/E at 1700$ gold and the current 130 000 ounce mine plan we get 2.30$ (2.85$ CAD) a share.
Obviously its only Barrick , Kirkland , Eldorado etc that are trading at 15x right now but they had much higher P/Es in 2020 hence the importance of a sector rotation back into miners.
And yes gold could go back to 1300$ where we wouldn't see that much appreciation without further drilling and debt repayment and on and on..But nothing in this market is impossible.