Post by
JAYDEE16 on Nov 03, 2021 9:12pm
Just for fun
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.
Comment by
Curbside100 on Nov 04, 2021 12:53pm
For fun I would like to know ifthey have started drillling again
Comment by
JAYDEE16 on Nov 04, 2021 4:54pm
Mid november, already one rig on site. Won't take long for them to hit something, prolly take longer to get the lab assays back haha. In any case im sure 7million bucks can get a few drills turning.
Comment by
Curbside100 on Nov 05, 2021 7:55am
The good thing is the drilling is pretty simple --not real hard rock ---not sure where the cores get tested
Comment by
yoshka2000 on Nov 05, 2021 6:28pm
What's the average waiting period,...3-6mo's for results?
Comment by
Curbside100 on Nov 08, 2021 1:15pm
not sure but shorter than in Canada ---nice move today
Comment by
mrsly0 on Nov 10, 2021 3:52pm
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
Comment by
JAYDEE16 on Nov 10, 2021 5:20pm
Maybe for an explorer?! But that's a vague statement.. What if a miner has mulitple assets and sustained production? Maybe asset value is key for a buyout before any cash being made. Barrick is priced using a p/e of 15 so what am I missing here?
Comment by
mrsly0 on Nov 11, 2021 11:02am
I'm referring to orezone, a single mine/asset junior mining company.... for barrick there's a board for discussing them and other "major" mining companies. good luck
Comment by
JAYDEE16 on Nov 11, 2021 6:32pm
Hence the title of my post " JUST FOR FUN" . I know we are on the Orezone board. Wtf is up with your condiscending attitude?! Ore is building a mine .. the landscape has changed. I think you have been waiting too long for a takeover here...